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Full text of "North Carolina Register v.3 no. 2 (4/15/1988)"

J f^BR }<r-Kj/-;^3^/.n^/^^"l 



RECEIVED 



APR 18 1988 
ILAW UBRARY 



The 
NORTH CAROLINA 

REGISTER 



IN THIS ISSUE 



FINAL DECISION LETTER 



PROPOSED RULES 

Administrative Hearings 

Crime Control and Public Safety 

Human Resources 

Insurance 

Licensing Boards 

NRCD 



FINAL RULES 

Hearing Aid Dealers 

LIST OF RULES AFFECTED 



ISSUE DATE: APRIL 15, 1988 
Volume 3 • Issue 2 • Pages 26-108 



INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE 



NORTH CAROLINA REGISTER 

The North Carolina Register is published bi-monthly 
and contains information relating to agency, executive, 
legislative and judicial actions required by or affecting 
Chapter 150B of the General Statutes. All proposed, ad- 
ministrative rules and amendments filed under Chapter 
150B must be published in the Register. The Register 
will typically com.prise approximately fifty pages per 
issue of legal text. 

State law requires that a copy of each issue be pro- 
\ided free of charge to each county in the state and to 
various state officials and institutions. The North 
CaroUna Register is available by yearly subscription at 
a cost of ninety-five dollars ($95.00) for 24 issues. 

Requests for subscriptions to the North Carolina 
Register should be directed to the Office of Ad- 
ministrative Hearings, P. O. Drawer 11666, Raleigh, N. 
C. 27604, Attn: Subscriptions. 

ADOPTION, AMENDMENT, AND REPEAL OF 
RULES 

An agency intending to adopt, amend, or repeal a rule 
must first publish notice of the proposed action in the 
North Carolina Register. The notice must include the 
time and place of the public hearing; a statement of how 
public comments may be submitted to the agency either 
at the hearing or otherwise; the text of the proposed 
rule or amendment; a reference to the Statutory 
Authority for the action and the proposed effective date. 

The Director of the Office of Administrative Hearings 
has authority to publish a summary, rather than the 
full text, of any amendment which is considered to be 
too lengthy. In such case, the full text of the rule con- 
taining the proposed amendment will be a\ailable for 
public inspection at the Rules Division of the Office of 
Administrative Hearings and at the office of the pro- 
mulgating agency. 

Unless a specific statute provides otherwise, at least 
30 days must elapse following publication of the pro- 
posal in the North Carolina Register before the agency 
may conduct the required public hearing and take ac- 
tion on the proposed adoption, amendment or repeal. 

When final action is taken, the promulgating agency 
must file any adopted or amended rule for approval by 
the Administrative Rules Review Commission. Upon ap- 
proval of ARRC, the adopted or amended rule must be 
filed with the Office of Administrati\e Hearings. If it 
differs substantially from the proposed form published 
as part of the public notice, upon request by the agen- 
cy, the adopted version will again be published in the 
North Carolina Register. 

A rule, or amended rule cannot become effective 
earlier than the first day of the second calendar month 
after the adoption is filed with the Office of Ad- 
ministrative Hearings for publication in the NCAC. 

Proposed action on rules may be withdrawn by the 
promulgating agency at any time before final action is 
taken by the agency. 

TEMPORARY RULES 

Under certain conditions of an emergency nature, 
some agencies may issue temporary rules. A temporary- 
rule becomes effective when adopted and remains in 



effect for the period specified in the rule or 180 days 
whichever is less. An agency adopting a temporary ruk 
must begin normal rule-making procedures on the per 
manent rule at the same time the temporary rule i< 
adopted. 

NORTH CAROLINA ADMINISTRATIVE CODE 

The North Carolina Administrative Code (NCAC) is 
a compilation and index of the administrative rules ol 
25 state agencies and 38 occupational licensing boards 
The NCAC comprises approximately 15,000 letter size 
single spaced pages of material of which approximate 
ly 35% is changed annually. Compilation and publica 
tion of the NCAC is mandated by G.S. 150B-63(b). 

The Code is divided into Titles and Chapters. Eacli 
state agency is assigned a separate title which is fur 
ther broken down by chapters. Title 21 is designatec 
for occupational licensing boards. 

The NCAC is available in two formats. 

(1) Single pages may be obtained at a minimun 
cost of two dollars and 50 cents ($2.50) for 1( 
pages or less, plus fifteen cents ($0.15) per eact 
additional page. 

(2) The full publication consists of 52 volumes 
totaling in excess of 15,000 pages. It is sup 
plemented monthly with replacement pages. ^ 
one year subscription to the full publication in 
eluding supplements can be purchased foi 
seven hundred and fifty dollars ($750.00). In 
dividual volumes may also be purchased witl 
supplement service. Renewal subscriptions foj 
supplements to the initial publication available 

Requests for pages of rules or volumes of the NCAC 
should be directed to the Office of Administrative 
Hearings. 

NOTE 

The foregoing is a generalized statement of the pro 
cedures to be followed. For specific statutory language 
it is suggested that Articles 2 and 5 of Chapter 150B o 
the General Statutes be examined carefully. 

CITATION TO THE NORTH CAROLINA 
REGISTER 

The North Carolina Register is cited by volume, issue 
page number and date. 1:1 NCR 101-201, April 1, 198« 

refers to Volume 1, Issue 1, pages 101 through 201 o: 
the North Carolina Register issued on April 1, 1986. 



North Carolina Register. Published bi-monthly by 
the Office of Administrative Hearings, P.O. 
Drawer 1 1666, Raleigh, North Carolina 27604, pur- 
suant to Chapter 150B of the General Statutes. 
Subscriptions ninety-five dollars ($95.00) per year. 
North Carolina Administrative Code. Published 
in looseleaf notebooks with supplement service by 
the Office of Administrative Hearings, P.O. 
Drawer 1 1666, Raleigh, North Carolina 27604, pur- 
suant to Chapter 150B of the General Satutes. 
Subscriptions seven hundred and fifty dollars 
($750.00). Individual volumes available. 



NORTH 
CAROLINA 
REGISTER 




Office of Administrative Hearings 

P. O. Drawer 1 1666 

Raleigh, AC 27604 

(919) 733-2678 



Robert A. Melott, 

Director 
James R. Scarcella, Sr. 

Deputy Director 
Molly Mason, 

Assistant Director 

Staff: 

Ruby Creech, 

Publications Coordinator 
Teresa Johnson, 

Editorial Assistant 
Jean Shirley, 

Editorial Assistant 
Latarsha Roberts, 

Records Clerk 



ISSUE CONTENTS 



I. FINAL DECISION LETTER 

Voting Rights Act 26 



II. PROPOSED RULES 

Administrative Hearings 

Hearings Division 76 

Crime Control & Public 
Safety 

Alcohol Law Enforcement 47 

Human Resources 

Medical Assistance 30 

Office of the Secretary 31 

Social Services Commission 27 

Insurance 

Fire and Casualty 32 

Licensing Boards 

CPA 73 

NRCD 

Coastal Management 67 

Community Assistance 69 

Forest Resources 68 

Marine Fisheries 62 

III. FINAL RULES 

Hearing Aid Dealers 77 

IV. LIST OF RULES AFFECTED 

April 1, 1988 102 

V. CUMULATIVE INDEX 107 



NORTH CAROLINA REGISTER 

Publication Deadlines and Schedules 

(March 1988 - March 1989) 



Issue 


Last Day 


Last Day 


Earliest 


+ 


Dale 


for 


for 


Date for 


Earliest 




Filing 


Electronic 


Public 


Effective 






Filing 


Hearing & 
Adoption by 
Agency 


Date 


+++♦+++* 


++++*+♦♦ 


++++++++ 


+♦+**+++ 


♦++*+*+H 


03:15/88 


02/24; 88 


03/02/88 


04/14/88 


07/01/88 


04/04/88 


03/11/88 


03/18/88 


05/04/88 


08/01/88 


04/15/88 


03/25/88 


04/01/88 


05/15/88 


08/01/88 


05 02/88 


04/11/88 


04/18/88 


06/01/88 


09/01/88 


05/16/88 


04/27/88 


05/03/88 


06/15/88 


09/01/88 


06/01/88 


05/10/88 


05/17/88 


07/01/88 


10/01/88 


06/15/88 


05/26/88 


06/02/88 


07/15/88 


10/01/88 


07 01/88 


06/1088 


06/17/88 


07/31/88 


11/01/88 


07/15/88 


06/24/88 


07/01/88 


08/14/88 


11/01/88 


08/01/88 


07/11/88 


07/18/88 


08/31/88 


12/01/88 


08/15/88 


07/26; 88 


08/02/88 


09/14/88 


12/01/88 


09/01/88 


08/11/88 


08/18/88 


10/01/88 


01/01/89 


09/15/88 


08/26/88 


09/02/88 


10/15/88 


01/01/89 


10/03/88 


09/12/88 


09/19/88 


11/02/88 


02/01/89 


10/14/88 


09/26/88 


10/03/88 


11/13/88 


02/01/89 


11/01/88 


10/11/88 


10/18/88 


12/01/88 


03/01/89 


11/15/88 


10/26/88 


11/02/88 


12/15/88 


03/01/89 


12/01/88 


11/07/88 


11/15/88 


12/31/88 


04/01/89 


12/15/88 


11/23/88 


12/02/88 


01/14/89 


04/01/89 


01/02/89 


12/08/88 


12/15/88 


02/01/89 


05/01/89 


01/16/89 


12/27/88 


01/03/89 


02/15/89 


05/01/89 


02/01/89 


01/10/89 


01/17/89 


03/03/89 


06/01/89 


02/15/89 


01/26/89 


02/02/89 


03/17/89 


06/01/89 


03 01/89 


02/08/89 


02/15/89 


03/31/89 


07/01/89 


03/15/89 


02/21/89 


03'02/89 


04/14/89 


07/01/89 



* The "Earliest Effectiye Date" is computed assuming that the public hearing 
and adoption occur in the calendar month immediately following the "Issue 
Date" , that the agency files the rule with The Administrative Rules Reiiew 
Commission by the 20th of the same calendar month and that ARRC approves 
the nde at the next calendar month meeting. 



VOTING RIGHTS ACT FINAL DECISION LETTER 



[G.S. J20-30.9H, effective July 16, 1986, requires that all letters and other documents issued by the 
Attorney General of the United States in which a final decision is made concerning a "change af- 
fecting voting" under Section 5 of the Voting Rights Act of J 965 be published in the North Carolina 
Register. / 



U.S. Department of Justice 
Civil Rights Division 

WBR:MAP:TGL:gmh 

DJ 166-012-3 Voting Section 

T2505-2506 P.O. Box 66128 

T5446 Washington, D.C. 20035-6128 

March 25, 1988 

Michael Crowell, Esq. 
Tharrington, Smith and Hargrove 
P.O. Box 1151 
Raleigh, North Carolina 27602 

Dear Mr. Crowell; 

This refers to the procedures for conducting the March 29, 1988, bond election, and the consol- 
idation of votmg precincts and the polling place therefor for the Southwest Creek Water and Sewerage 
District in Onslow County, North Carolina, submitted to the Attorney General pursuant to Section 5 
of the Voting Rights Act of 1965, as amended, 42 U.S.C. 1973c. We received your submission on 
January 28, 1988. 

The Attorney General does not interpose any objections to the changes in question. However, 
we feel a responsibility to point out that Section 5 of the Voting Rights Act expressly provides that the 
failure of the Attorney General to object does not bar any subsequent judicial action to enjoin the 
enforcement of such changes. See the Procedures for the Administration of Section 5 (28 C.F.R. 
51.41). 

Sincerely, 

Wm. Bradford Reynolds 
Assistant Attorney General 
Civil Rights Division 

By: 



Gerald W. Jones 
Chief, Voting Section 



NOR TH CAROLINA REGIS TER 26 



PROPOSED RULES 



TITLE 10 - DEPARTMENT OF HUMAN 
RESOURCES 

l\otice is hereby given in accordance with G.S. 
1 SOB- 1 2 that the Social Services Commission in- 
tends to adopt the regulation cited as 10 NCAC 
22G .0905; and amend regulations cited as JO 
NCAC 42C .2002: 10 NCAC 49 A .0002; JO 
NCAC 49B .0301, .0303 - .0306, .0308, .0310 ■ 
.0311. .0313; 10 NCAC 49C .0101, .0104; 10 
NCAC 49D .0001 - .0002; 10 NCAC 49E .0001. 

1 he proposed effective date of this action is Au- 
gust 1, 198S. 

1 he public hearing will be conducted at 10:00 
a.m. on May 18, 198S at Woodoak Building, 
Second Floor Conference Room, 1100 Navaho 
Drive, Raleigh, NC 27609. 

(comment Procedures: Any interested person 
may present his; her views and comments either in 
writing or orally at the hearing. Any person may 
request information, permission to be heard or 
copies of the proposed regulations by writing or 
calling Bonnie Allred, 325 N. Salisbury Street, 
Raleigh, N.C. 27611, (919) 733-3055. 

CHAPTER 22 -AGING 

SLBCHAPTER 22G - PROGRAM OPERATIONS 

SECTION .0900 - ALLOCATIONS 

.0905 RESPITE CARE 

The respite care service funded with Social Ser- 
vices Block Grant funds and administered by the 
Division of Aging shall be operated in accordance 
with requirements contained in Chapter 738, 
Section 101 of the 1987 Session Laws of the 
North Carolina General Assembly. 

Statutory Authority G.S. 1438- 1 53; Chapter 738, 
1987 Session Laws. 

CHAPTER 42 - INDIVIDUAL AND FAMILY 
SUPPORT 

SUBCHAPTER 42C - LICENSING OF FAMILY 
CARE HOMES 

SECTION .2000 - PERSONNEL 

.2002 QUALIFICATIONS OF SUPERVISOR 
-IN-C1L\RGE 

The super\'isor-in-charge is responsible to the 
administrator for carr\'ing out the program in the 



home in the absence of the administrator. All 
of the following requirements must be met: 
(2) The qualifications of the administrator and 
co-administrator referenced in Paragraphs 
(3), (7), aH4 (8) and (9) of Rule .2001 of this 
Subchapter shall apply to the supervisor-in- 
charge. The supervisor-in-charge must meet 
a minimum educational requirement by be- 
ing at least a high school graduate or certi- 
fied under the G.E.D. Program or by 
passing an alternative examination estab- 
lished by the Department of Human Re- 
sources. Documentation that these 
qualifications have been met must be on file 
in the home prior to employing the 
supervisor-in-charge ; 

Statutory Authority G.S. 13ID-2; 143B-I53. 

CHAPTER 49 - AID TO FAMILIES WITH 
DEPENDENT CHILDREN (AFDC) 

SUBCHAPTER 49A - GENERAL PROGRAM 
ADMINISTRATION 

.0002 DEFINITIONS 

(19) "Minor Mother" means a mother who is 
under the age of -W j_8 who may be payee for 
an assistance unit or a recipient included in 
another assistance unit. 

Authority G.S. lOSA-25; 143B-153; 45 C.F.R. 
233. 

SUBCHAPTER 498 - ELIGIBILITY 
DETERMINATION 

SECTION .0300 - ELIGIBILITY FACTORS 

.0301 AGE 

(a) Eligibility requirements pertaining to age 
shall be found in 45 CFR 233.10 and this pro- 
vision is hereby adopted bv reference under G.S. 
150B-14(c). 

Authority G.S. 143B-153; 45 C.F.R. 233.39. 

.0303 UNITED STATES CITIZENSHIP 

(a) EligibiHty requirement pertaining to United 
States Citizenship shall be found in 45 CFR 
233.50 and this provision is hereby adopted by 
reference under G.S. 150B-14(c'). 

Authority G.S. 143B-153: 45 C.F.R. 233.50. 

.0304 KINSHIP AND LIVING WITH A 
SPECIFIED RELATIVE 

(a) Ehgibihty requirements pertaining to 
kinship and li\ing with a specified relative shall 
be found in 45 CFR 233.90 and this provision is 



27 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



hereby adopted by reference under G.S. 
1S0B-I4(c). 

Authority G.S. J08A-25; 143B-153; 45 C.F.R. 
233.10. 

.0305 RESIDENCE 

(a) Eligibility requirements pertaining to resi- 
dence shall be found in 45 CFR 233.40 and this 
provision is hereby adopted by reference under 
G.S. 150B-14(c). 

Authority G.S. J08A-35; I43B-I53; 45 C.F.R. 

233.40. 

.0306 DEPRIVATION 

Eligibility requirements pertaining to depri- 
vation shall be found in 45 CFR 233.90 and this 
provision is hereby adopted by reference under 
G.S. 150B-14(c). 

Authority G.S. 108A-25; I43B-153; 45 C.F.R. 
233.90. 

.0308 INCOME 

(c) tft addition te^ tbe income excluoione found 
ift 4-^ CFR 233.20 Earned income exclusions are 
found in 45 CFR 233.20 and this provision is 
hereby adopted by reference under G.S. 
150B-14(c). In addition, the following items of 
earned income shall be excluded in determining 
eligibility: 

(1) Foster Care and State Foster Home Pay- 
ments equal to or below the state maxi- 
mum rates to AFDC recipients who serve 
as foster parents; 

(2) earned income from the 185 percent lim- 
itation for up to six months in a calendar 
year of a child applicant/recipient who is 
a full-time student. 

(d) Good Cause Provisions for Failure to Re- 
port Income or Return Monthly Report Timely. 

(1) Circumstances that constitute "good 
cause" for failing to report income in a 
timely manner are limited to: 

(A) the death of a household member; 

(B) the hospitalization of the 
applicant/recipient or a dependent child 
for whom she provides care; 

(C) failure of the applicant/recipient to re- 
port a change in monthly income of five 
doUars ($5.00) or less; 

(D) any other reason determined by the 
hearing officer based on evidence provided 
by the recipient. 

(2) Circumstances that constitute "good 
cause" for failing to return a monthly re- 



port form in a timely manner are limited 
to: 

(A) the death of a household member; 

(B) the hospitalization of the recipient or a 
dependent child for whom she provides 
care; 

(C) extenuating circumstances beyond the 
control of the recipient. Extenuating cir- 
cumstances are defined as a natural disas- 
ter, a fire, computer breakdown, a postal 
strike, or postal delay provided the return 
envelope is postmarked the day prior to 
the deadline; 

(D) any other reason determined by the 
county director or his designee based on 
evidence provided by the recipient. 

(e) The following items of unearned income 
shall be included in determining eligibility for or 
the amount of assistance: 

(1) OASDHI benefits; 

(2) Veterans Administration benefits; 

(3) Railroad Retirement benefits; 

(4) pensions or retirement benefits; 

(5) workmen's compensation; 

(6) unemployment compensation; 

(7) support payments and contributions; 

(8) work release payments; 

(9) dividends and income from trust funds; 

(10) private disability or unemployment ben- 
efits, including benefits from insurance 
plans; 

(11) any portion of loans, grants, or scholar- 
ships designated or used for maintenance 
needs which is a duplication of items in- 
cluded in the assistance standard; 

(12) trade readjustment benefits; 

(13) military allotments; 

(14) brown lung benefits; 

( 1 5) black lung benefits; 

(16) lump sum payments; 

(17) deemed income from a stepparent not 
receiving assistance; 

( 1 8) deemed income to an alien from a spon- 
sor and his spouse if living together; 

(19) any other income unless excluded by 
federal law; 

(20) cash contributions, ( e xcluding oituations 
i» which household oxponooo af» shar e d). 

(f) fe addition te tfe« unearn e d inoomo e xclu 
oiono found m 4S CFR. 333.20, Unearned income 
exclusions are found in 45 CFR 233.20 and this 
provision is hereby adopted by reference under 
G.S. 150B- 14(c). In addition, the foUowing 
items of unearned income shall be excluded in 
determining eligibility for assistance. 

(1) food given to or grown by a member of 
the household; 



NORTH CAROLINA REGISTER 



28 



PROPOSED RULES 



(2) 
(3) 
(4) 



(5J 
(6) 

(7) 



(8) 



(9j 



the value of the coupon allotment re- 
ceived under the Food Stamp Program; 
child support being routed through IV-D 
Accounting; 

assistance from other agencies and or- 
ganizations. This includes fmancial as- 
sistance and in-kind goods or services 
received from a governmental, civic, or 
charitable organization so long as such aid 
is for rehabilitation purposes, special 
training or educational opportunities and 
provided no duplication exists; 
HUD Section 8 payments; 
loans (if there is any agreed upon repay- 
ment plan); 

Assistance received through the Low In- 
come Energy Assistance Program includ- 
ing the Crisis Intervention Program; 
Home energv' assistance as defined in 45 
C.F.R. 233.53 and this provision is 
adopted bv reference under G.S. 
150B- 14(c). 

IncomiC paid to a child recipient through 
Job Training Partnership Act of 1982 as 
need-based payments, payments for sup- 
portive sen.'ices, compensation in lieu of 
wages and payments to Job Corps partic- 
ipants. 
( 1 0") Gifts, includint; but not limited to birth- 
dav. Christmas and graduation, up to 
thirty dollars (S30.00) per calendar quarter 
per assistance unit member. If the pavee 
states in writing the gift was intended for 
the entire assistance unit, the gift shall be 
di\'ided among assistance unit members. 
The .gift shall be divided in the manner 
that IS most advantageous to the assist- 
ance unit. 
(g) Veiification. TJie cHent shall be respuDnsible 
for providing verification of earned income in- 
cluding operational expenses for farm or self- 
employment income. For .gifts, the recipient 
shall be responsible for obtaining a wntten state- 
ment from the provider of the aft indicating the 
amount, date .given and purpose. The county 
department of social 5er\ices shall be responsible 
for all other income verifications. 

Authoritv G.S. lOSA-25; I08A-33; 143B-I53: 45 
C.F.R. 233. 

.0310 MONTHLY REPORTING 

In addition to the requirements found in 45 
CFR 233.36 \\"hich is hereby adopted bv refer- 
ence under G.S. 150B-14(c), monthly reporting 
shall be required on other error-prone classes of 
recipients as defmed by the state based on qixality 
control and other management data. 



Authority G.S. 
C.F.R. 233.36. 



143B-I53; 45 C.F.R. 133.28; 45 



.031 1 WORK INCENTIVE PROGRAM (WIN) 
WIN Registration requirements shall be found 
in 45 CFR 224.20 and this provision is hereby 
adopted by reference under G.S. 150B-14(c). 

Authority G.S. I08A-29; I43B-153; 45 C.F.R. 
233.10: 45 CFR. 233.20. 

.0313 COMMUNITY WORK EXPERIENCE 
PROGRAM (CVVEP) 

(b) Exemptions are mandated in 45 CFR 238, 
which is hereby adopted by reference under G.S. 
150B-14(c), except that an individual shall be 
exempt if he is a parent or other caretaker relative 
of a child(ren) under age three. 



Statutory Authority G.S. 
238. 



143B-153; 45 C.F.R. 



SUBCHAPTER 49C - EMERGENCY 
.\SS I STANCE 

SECTION .0100 - COVERAGE 

.0101 ELIGIBILITY FOR COVERAGE 

(a) Ehgibility for coverage will be as follows: 



(1) 



Emergency Assistance shall be provided 
to or on behalf of a needy child(ren) under 
the age of 2 1 , the specified relative of the 
needy child(ren), the spouse of the speci- 
fied relative and all other individuals 
sharing the same single unit dwelling with 
the exception of roomer boarders and 
other individuals who occupy a separate 
apartment within the single unit dwelling. 
The needy child under the age of 21 who 
is within the specified degree of relation- 
ship must be hving with the specified rel- 
ative or have lived with the specified 
relative within six months prior to the 
month in which Emergency Assistance is 
requested. 

Families of migrant workers shall be 
covered if the requirements stated in Par- 
agraph (a) of this Rule and the regulations 
stated m 45 CFR 233.120 are met. 45 
CFR 233.120 is hereby adopted bv refer- 
ence under G.S. 150B-14(c). 



Statutory Authority Chapter 1014, Section 1 19, 
Session Laws 1985 (1986 Regular Session); 
143B-I53. 



(2) 



.0104 BENEFIT LE\ EL 



29 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



(a) The maximum benefit per household is &v» 
hundred dolloro ($500) three hundred dollars 
($300.00) during thirty consecutive days. Such 
assistance cannot be received again within a 
twelve consecutive month period. 

Statutory Authority Chapter 1014, Section 1 19, 
Session Laws 1985 (1986 Regular Session); 
MSB- 1 53. 

SUBCHAPTER 49D - WORK 
SLPPLEMENTATION PROGRAM (WSP) 

.0001 WSP OPERATION 

(a) Requirements pertaining to operation of 
WSP are found in 45 CFR 239 and this provision 
is hereby adopted by reference under G.S. 
15nB-14(c). 

(b) WSP will be operated only in limited spe- 
cific geographical areas of the State. The areas 
wUl be determined by the Division of Social Ser- 
vices. 

Statutory Authority G.S. I43B-I53; Chapter 
1014. Section 128, 1985 Session Laws (1986 
Regular Session); 45 CFR 239. 

.0002 ELIGIBILITY FOR PARTICIPATION 

AFDC recipients or applicants in the following 
categories shall be eligible to volunteer to partic- 
ipate in WSP: 

(1) AFDC recipients living in the specified 
areas who are not exempt from the work 
requirement in place in that area; and 

(2) AFDC recipients who are exempt from 
work registration solely due to being the 
caretaker of a child botweon ti*e a§e6 ef throo 
te 6wt yoQjG. younger than six years old. 

Statutory Authority G.S. I43B-153; Chapter 
1014, Section 128, 1985 Session Laws (1986 
Regular Session); 45 CFR 239. 

SUBCHAPTER 49E - UNEMPLOYED PARENT 
PROGRAM 

.0001 GENERAL PROCEDURES 

(a) Requirements pertaining to operation of the 
Unemployed Parent Program are found in 45 
CFR 233.100 and this provision is hereby 
adopted by reference under G.S. 150B-14(c). 

Statutory Authority G.S. 108A-28; 143B-I53; 
Chapter 738, 1987 Session Laws. 

'k'krk-k-k-k-k'kic-k-k-k'k-krk'k-krk 



No 



' otice is hereby given in accordance with G.S. 
I50B-12 that the Department of Human 
Resources! Division of Medical Assistance intends 
to amend the regulation cited as 10 NCAC 26H 
.0106. 

1 he proposed effective date of this action is Au- 
gust L 1988. 

1 he public hearing will be conducted at 1 :30 
p.m. on May 16, 1988 at North Carolina Division 
of Medical Assistance, 1985 Umstead Drive, 
Room 201, Raleigh, N.C. 27603. 



Co 



-omment Procedures: Written comments con- 
cerning this amendment must be submitted by 
May 16, 1988 to: Director, Division of Medical 
Assistance, 1985 Umstead Drive, Raleigh, N.C. 
27603. Oral comments may be presented at the 
hearing. In addition, a fiscal impact statement 
on this amendment is available upon written re- 
quest from the same address. 

CHAPTER 26 - MEDICAL SERVICES 

SUBCHAPTER 26H - REIMBURSEMENT PLANS 

SECTION .0100 - REIMBURSEMENT FOR 

SKILLED NURSING FACILITY AND 

INTERMEDIATE CARE FACILITY SERVICES 

.0106 APPEALS 

(c) Direct ratoo A direct rate may be adjusted 
on appeal if the provider can establish to the sa- 
tisfaction of the state agency that such an ad- 
justment is necessary to protect the health and 
safety of its patients and to sustain its fmancial 
viability. Diroot »te adjuetmonts 6ft» be conoid 
efe4 under tki« provioion only fe* facilities with 

J^^^^ji t^^^^c ^^^^^J ♦ j~\ ^Um l^^^UAC ^J^^u^ M^ifc B^^^^JiX A^^^ 
^rnn^ j-rtj^ ^^Ul it 11 T--^j-»«l»f«f*i7' trt «-t o l^w^J ^^L A^^CA ^^^^^^^^ 

»f ICF). Rates H»y be adjust e d upward under 
^rm provioion %» » level tkat- equals the actual 
amount expended ift the most recent 45 month 
desk ef field audited ee^t report oxoopt Aat' He 
facility's Fate se adjusted may be increased te a 
level greater than: 

ft) the average fate then m effect, ef 
(3) ^ percent higher than its current fate fef a 
Hew facility. 
■Ne provider may receive mor e than ese direct 

A facility is considered to be fmanciaUy viable, 
and therefore not eligible for a rate adjustment, 
if its total Medicaid rate payments and return on 
equity exceeded its total Medicaid cost as re- 
ported in the most recent cost report available. 



NORTH CAROLINA REGISTER 



30 



PROPOSED RULES 



Providers are expected to utilize all available 
funds to provide the services that their patients 
need. Once a provider has reported a loss for a 
certain year, a direct rate adjustment can then be 
negotiated for the following year at a level no 
greater than what is absolutely necessary for pa- 
tient care and for the financial viability of the fa- 
cility. The adjusted rate cannot exceed the 
applicable maximum direct rate as established by 
Rule .0102(b')(3). 

(4^ Dir e ct ratoo may aW be adjuotod tor 
(-I4 oorrtjct orronoouo date tft the Fate baoo; 
(3} aocommodato afty ohangoo m ttte lev e ls 
Bf pricoD »f rooourcoB required te provide 
patient eafe that- is mandated by state Bf 
federal la¥r* ef rogulationo; b* 
f^ maintain patient ea*** Gon'ioeo at- lovelo 
commonourate ' ■ ' ■ 'ith tiiat- provided m the 
eest- reporting period ending September 

(e^ (d} Adjustments to reimbursement settle- 
ments shall be made on the basis of the re- 
imbursement principles set forth in this plan or 
incorporated here by reference [See Rule 
.0104(e)]. 

Authority G.S. I0SA-25(b); 108A-54; 108A-55; 
150B-I1: S.L. I9S5, c. 479, s. 86; 42 C.F.R. 447, 
Subpart C. 



l\otice is hereby given in accordance with G.S. 
150B-I2 that the Department of Human Re- 
sources - Office of the Secretary intends to amend 
the regulation cited as 10 NCAC 43L .0201. 

1 he proposed effective date of this action is Au- 
gust f 1988. 

1 he public hearing will be conducted at 10:00 
a.m. on May 19, 1988 at Albemarle Building, 
Secretary's Conference Room, 325 N. Salisbury 
Street, Raleigh, NC 2761 1. 

y^omment Procedures: Any interested person 
may present his/her views and comments either in 
writing or orally at the hearing. Any person may 
request information, permission to be heard or 
copies of the proposed regulations by writing or 
calling Jennifer Martin. 325 N. Salisbury Street, 
Raleigh, NC 2761/, (9I9J 733-6920. 

CHAPTER 43 - SERVICES PROGRAM PLAN 

SUBCHAPTER 43L - SOCIAL SERVICES BLOCK 
GRANT 



SECTION .0200 - SERVICES TO BE PROVIDED 

.0201 SOCIAL SERVICES BLOCK GRANT 
FUNDED SERVICES 

Services which may be reimbursed with Social 
Services Block Grant Funds are: 

(1) adjustment services for the blind or visually 
impaired; 

(2) adoption services; 

(3) adult developmental activity programs for 
individuals who are substantially mentally 
retarded or severely physically disabled; 

(4) before/after school and summer develop- 
mental day centers for children who are 
mentally retarded; 

(5) child day care services; 

(6) chore services for the blind; 

(7) community living services; 

(8) day care services for adults; 

(9) day treatment programs for children and 
adolescents who are emotionally disturbed; 

(10) delinquency prevention services; 

(11) developmental day centers for preschool 
children who are mentally retarded; 

(12) early childhood intervention services for 
children who are mentally retarded or at 
high risk for mental retardation; 

(13) employment and training support services; 

(14) family planning services; 

(15) foster care services for adults; 

(16) foster care services for children; 

(17) health support services; 

( 1 8) housing and home improvement services; 

(19) individual and family adjustment services; 

(20) in-home services: chore services; 

(21) in-home services: homemaker services; 
.{22) ' nutrition services; 

(23) outpatient services for individuals of all 
disability groups; 

(24) partial hospitalization services for adult 
and elderly individuals who are acutely 
mentally ill or are substance abusers; 

(25) personal and family counseling; 

(26) preparation and delivery of meals; 

(27) problem pregnancy services; 

(28) protective services for adults; 

(29) protective services for children; 

(30) residential treatment for the emotionally 
disturbed; 

(31) residential treatment programs for children 
and adolescents who are emotionally dis- 
turbed; 

(32) residential treatment/rehabilitation pro- 
grams for individuals who are alcohol or 
other drug abusers; 

(33) respite care services; 



31 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



(44 ^34) social setting and non-hospital medical 

detoxification services for individuals who 

are alcoholics; 
fM K35) transitional residence programs for 

adult and elderly individuals who are men- 

taUyill; 
f34 ^36) transportation services; 
f^4 ^37) youth services. 

Statutory Authority G.S. I43B-I0. 

TITLE 1 1 - DEPARTMENT OF 
INSURANCE 



lyotice is hereby given in accordance with G.S. 
J SOB- J 2 that the Department of Insurance intends 
to adopt regulations cited as II NCAC 10 .1101 
- .1106. 

1 he proposed effective date of this action is Au- 
gust I, 1988. 

1 he public hearing will be conducted at 10:00 
a.m. on May 16, 1988 at Third Floor Hearing 
Room, Dobbs Building, 430 N. Salisbury Street, 
Raleigh, N.C. 27611. 



Co 



-omment Procedures: Written comments may 
be sent to Pete Murdza, Actuarial Services, P.O. 
Box 26387. Raleigh, N.C. 27611. Oral presenta- 
tions may be made at the public hearing. Anyone 
having questions should call Pete Murdza at 
(919) 733-3284. or Linda Stott at (919) 
733-4700. 

CHAPTER 10 - FIRE AND CASUALTY 
DIVISION 

SECTION .1 100 - RATE FILINGS 

.1101 PURPOSE 

The purposes of this Section are the following: 

(1) To expedite the review of rate filings so 
that statutory time limits can be met; 

(2) To avoid the time and expense of unnec- 
essary and duplicative data requests; 

(3) To provide for the adequacy of each filing's 
contents for public inspection. 

Statutory Authority G.S. 58-9. 

.1102 APPLICABILITY 

(a) Rule .1 103 applies to all workers' compen- 
sation rate filings made by the North Carolina 
Rate Bureau. 

(b) Rule . 1 1 04 applies to all nonfleet private 
passenger rate filings made by the North Carolina 



Rate Bureau or the North Carolina Reinsurance 
Facility. 

(c) Rule .1 105 applies to all rate filings of the 
North Carolina Rate Bureau other than those 
covering workers' compensation and nonfleet 
private passenger automobile insurance. 

(d) Rule .1106 applies to all applications for 
deviations from the rates of the North Carolina 
Rate Bureau. 



Statutory Authority 
58-124.23. 



G.S. 58-9; 58-124.20; 



.1 103 WORKERS' CO.MPENSATION 

The information required by N.C. G.S. 
58- 124.20(h) shall be presented as follows: 
Note: If in addition to the full years of data spe- 
cified in any of the below requests, more recent 
data of less than a full year is available, that data 
shall also be provided. 
(1) North Carolina premium, loss and loss 
adjustment experience: 

(a) Data from cdl companies writing workers' 
compensation insurance in North Caro- 
lina shall be included in the rate filing. If 
a company is excluded from the rate level, 
trend, loss development, expense determi- 
nation, classification differentials, or in- 
vestment income calculations, identify 
that company and its marketshare and 
provide an explanation for its exclusion. 

(b) Premiums at current rate level shall be 
calculated. Whenever on level factors are 
used, show their derivation. Also show 
the derivation of the percentages of total 
premium written and earned at various 
rate levels. 

(c) The amount of premium collected from 
the expense constant shall be shown. 
Provide this premium in dollars and as a 
percentage of the standard earned pre- 
mium and as a percentage of net earned 
premium. If the percentage of premium 
collected in this manner is expected to 
change, estimate the extent of the change 
and provide the details of this estimation. 

(d) The amount of premium collected by the 
minimum premium shall be shown. 
Provide this premium in dollars and as a 
percentage of standard earned premium 
and as a percentage of earned premium. 
If the percentage of premium collected in 
this manner is expected to change, esti- 
mate the extent of the change and provide 
the details of this estimation. 

(e) Earned premiums shall include premium 
collected from the specific disease loading. 



NORTH CAROLINA REGISTER 



32 



PROPOSED RULES 



If disease loadings have been excluded, 
provide a justification. 

(f) The latest earned premiums and markets- 
hares for the ten largest workers' com- 
pensation insurers in North Carolina shall 
be provided. 

(g) The following information on companies 
deviating from Bureau workers' compen- 
sation rates shall be included for each of 
the latest five years: 

(i) A list of aU deviating companies; 

(ii) The total standard premium written at 
deviated rates; 

(iii) The percentage of the entire statewide 
standard premium written at deviated 
rates; 

(iv) The total amount of deviations in dol- 
lars; 

(v) The average percentage deviation for 
deviating companies; 

(vi) The average percentage deviation for 
all companies, 
(h) The following information on company 
workers' compensation dividend practices 
shall be included for each of the latest five 
years: 



(i) A list of all companies issuing dividends; 

(ii) The total standard premium from poli- 
cies on which dividends were issued; 

(iii) The percentage of the entire statewide 
standard premium on which dividends 
were issued; 

(iv) The total amount of dividends in dol- 
lars; 

(v) The average percentage dividend issued 
by companies issuing dividends; 

(vi) The average percentage dividend issued 
by all companies, 
(i) Information from the Annual Statement 
on losses and premiums shall be included. 
Provide such information separately for 
the latest two Armual Statements includ- 
ing the following items on a composite 
basis for all workers' compensation insur- 
ers in North Carolina: 

(i) Page 14, Line 16; 

(ii) Part 2, Line 16; 

(ui) Part 2B, Line 16; 

(iv) Part 3A, Line 16. 
(j) All pohcy year and accident year incurred 
loss data used in the filing shall be pro- 
vided in the aggregate and also separated 
into paid losses, case incurreds, and in- 
curred but not reported losses, 
(k) For all incurred loss adjustment expense 
data contained in the filing, the related 
incurred losses shall be shown. 



(2) Credibility factor development and appli- 
cation. AU information relating to the se- 
lection of the credibility factors contained in 
the filing shall be provided. The following 
information shall be included: 

(a) All data reviewed and worksheets used in 
regard to credibility factors. 

(b) A complete description of the methodol- 
ogy used to derive the factors. 

(c) A description of alternative methodologies 
used or considered for use by the National 
Council on Compensation Insurance in 
other states. 

(d) A description of the criteria used to select 
one of the various methodologies for in- 
clusion in a particular filing. 

(e) Specific details regarding the application 
of these criteria in the selection of a 
methodology for this filing. 

(f) Details on the application of the method- 
ology to this filing. 

(3) Loss development factor development and 
apphcation. 

(a) So that loss development factors can be 
produced, the following loss data at suc- 
cessive evaluation dates shall be provided: 

(i) At least the latest available five years of 
data for matching companies for all pairs 
of successive evaluation dates; 

(ii) Data on both a policy year and an ac- 
cident year basis; 

(ui) Data separated into indemnity aind 
medical only losses as well as combined 
data; 

(iv) Data separated into paid, case incurred, 
and incurred but not reported portions as 
well as total losses; 

(v) Reported indemnity, medical only, and 
total claims for all years and evaluation 
dates for which loss information is pro- 
vided. 

(b) So that the different development patterns 
by type of injury can be traced, the fol- 
lowing loss data shall also be included: 

(i) At least the latest available ten unit sta- 
tistical pohcy years of loss data for 
matching companies for all pairs of suc- 
cessive evaluation dates; 

(ii) Case incurred losses, number of claims, 
standard earned premium, and earned ex- 
posures; 

(iii) Losses separated into indemnity and 
medical losses; 

(iv) Compensable claim experience sepa- 
rated into deaths, permanent totals, major 
permanent partials, minor permanent 
partials, and temporary totals; 



33 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



(v) Current on-level benefit factors for each 
injury type split between indemnity and 
medical; 

(vi) For each policy year, the actual average 
wage and the average wage after the ap- 
plication of any payroll limitation; 

(vii) All calculations and worksheets un- 
derlying the above data. 

(c) All information relating to the selection 
of the loss development factors contained 
in the filing shall be provided. The fol- 
lowing information shall be included: 

(i) All data reviewed and worksheets used 
in regard to loss development factors; 

(ii) A complete description of the method- 
ology used to arrive at the selected factors; 

(iii) A description of alternative methodol- 
ogies used or considered for use by the 
National Council on Compensation In- 
surance in other states; 

(iv) A description of the criteria used to se- 
lect one of the various methodologies for 
inclusion in a particular filing; 

(v) Specific details regarding the application 
of these criteria in the selection of a 
methodology for this filing; 

(vi) Details on the application of the meth- 
odology to this filing. 

(d) For each of the ten largest writers of 
workers' compensation insurance in 
North Carolina, a statement regarding any 
reserve strengthening or weakening that 
has occurred in the last five years shall be 
included. 

(4) Trending factor development and applica- 
tion, 
(a) So that a variety of possible trend factors 
may be evaluated, provide the following 
calculations: 
(i) Indemnity and medical trend factor cal- 
culations based upon both North Caro- 
lina policy year data and North Carolina 
accident year data, 
(ii) Indemnity and medical trend factor cal- 
culations based upon countrywide policy 
year and accident year data, 
(iii) Indemnity and medical trend factor 
calculations for individual states on both 
a policy year and an accident year basis 
and their reconciliations with the coun- 
trywide factors, 
(iv) For the medical trend, separate compi- 
lations for fee schedule and non-fee sche- 
dule states on both a policy year and an 
accident year basis, 
(v) Econometric projections of claim se- 
verity, claim frequency, and average 
weekly wages based on models used by 



or available to the North Carolina Rate 
Bureau, to the National Council on 
Compensation Insurance, or to any 
member company thereof 
(b) AH information relating to the selection 
of the trend factors contained in the filing 
shall be provided. The following infor- 
mation shall be included: 

(i) All data reviewed and worksheets used 
in regard to trend factors; 

(ii) A complete description of the method- 
ology used to derive the selected factors; 

(iii) A description of alternative methodol- 
ogies used or considered for use by the 
National Council on Compensation In- 
surance in other states; 

(iv) A description of the criteria used to se- 
lect one of the various methodologies for 
inclusion in a particular filing; 

(v) Specific details regarding the application 
of these criteria in the selection of a 
methodology for this filing; 

(vi) Details on the application of the meth- 
odology to this filing. 

(5) Changes in premium base and exposures. 

(a) Information on the distribution by size of 
policy shall be provided so that the effects 
of premium discount, the expense con- 
stant, and the minimum premium rule can 
be calculated. This information shall in- 
clude the number of policies and doUar 
amount of premium in North Carolina for 
the latest available five years separately for 
stock and nonstock companies, and com- 
bined using the following premium size 
distribution $0 - $99, $100 - $199, $200 - 
$299, $300 - $499, $500 - $999, $1,000 - 
$2,999, $3,000 - $4,999, $5,000 - $9,999, 
$10,000 - $24,999, $25,000 - $49,999, 
$50,000 - $99,999, $100,000 - $249,999, 
and over $249,999. 

(b) Any countrywide distributions of number 
of policies or premium by layer that is 
used in the filing shall be described. Also 
provide details of how such distributions 
have been used in the rate filing and a de- 
scription of any adjustments that have 
been made to the distributions. 

(c) The changes in the statewide average 
weekly wage for the latest five calendar 
years shall also be included as well as es- 
timated changes during the period when 
the rates will be Ln effect. 

(6) Limiting factor development and applica- 
tion. Information on the following items 
shall be provided: 

(a) Limitations on losses included in the sta- 
tistical data used in the filing; 



NORTH CAROLINA REGISTER 



34 



PROPOSED RULES 



(b) Limitations on the extent of the rate level 
change; 

(c) Limitations on the extent of classification 
rate changes; 

(d) Any other limitations applied. 
(7) Overhead expenses. 

(a) All information relating to the derivation 
of the expense provisions contained in the 
filing shall be provided. The following 
information shall be included: 

(i) .'\11 data reviewed and worksheets used 
in regard to expense provisions; 

(ii) A complete description of the method- 
ology used to derive the selected pro- 
visions; 

(iii) A description of alternative methodol- 
ogies used or considered for use by the 
National Council on Compensation In- 
surance in other states; 

(iv) A description of the criteria used to se- 
lect one of the various methodologies for 
inclusion in a particular filing; 

(v) Specific details regarding the application 
of these criteria in the selection of a 
methodology for this filing; 

(vi) Details on the application of the meth- 
odology" to this fihng. 

(b) llie tiling shall include support for all the 
expense, tax, and profit provisions for the 
proposed rates, under both the current 
and proposed expense programs. Explain 
why these provisions are appropriate for 
all types of insurance companies. 

(c) The proposed expense provisions shall be 
compared to those included in the latest 
Insurance Expense Exhibit, to the pre- 
liminary data underlying the next such 
Exhibit (if available), and to any other 
compilations of countn.'wide or statewide 
expenses. Describe any adjustments of 
countrywide data to reflect North Caro- 
lina conditions and provide the details of 
the underlying calculations. If the pro- 
posed provisions differ from those indi- 
cated by the data, provide an explanation. 

(d) .AH information available shall be provided 
on how proposed allowances for expenses 
are reviewed each year by committees of 
the National Council on Compensation 
Insurance and the North Carolina Rate 
Bureau. 

(e) If any of the collected loss data includes 
taxes or assessments of any type, the dol- 
lar amount of such taxes or assessments 
shall be calculated. 

(fj The details of the derivation of the tax 
multiplier shall be provided. 



(g) For each of the ten largest writers of 
workers' compensation insurance in 
North Carolina, a statement regarding any 
expense cutting activities undertaken in 
the last three years shall be included. 

(8) The percent rate change. 

(a) The overall statewide rate change shall be 
shown and as well as the amount of the 
change attributable to each of the follow- 
ing: loss experience, a modification of the 
trend factor, a change in expense pro- 
visions, law amendments, a change in the 
tax provision, a change in the assessment 
provision, and any other factors. 

(b) The rate changes for each industry group 
and each classification shall also be 
shown. 

(9) Proposed rates. The proposed rates for 
each classification shall be included. 

(10) Investment earnings. Information on an- 
ticipated investment income is necessary to 
establish the provision for underwriting 
profit and contingencies in the rates. 

(a) Information on the amount of investment 
income earned on loss, loss expense and 
unearned premium reserves in relation to 
both net and standard earned premium for 
workers' compensation in North Carolina 
shall be calculated for the latest five years 
and estimated for the current year and all 
years during which the proposed rates wUl 
be in effect. Provide the derivation of 
such calculations in detail including the 
amount of the composite resen,'es of each 
type at the beginning and end of each of 
the specified years. 

(b) Information on the estimated average 
length of time that elapses between the 
occurrence of a compensable accident in 
North Carolina and the payment of a 
claim shall be provided. The average shall 
be a weighted average based on size of 
claim payments. Indicate how the length 
has changed over the last ten years. 

(c) To evaluate recent insurer profitability, 
composite information from the Annual 
Statement for all workers' compensation 
insurers in North Carolina shall be in- 
cluded. Provide the following informa- 
tion from the latest two Annual 
Statements in the same format and detail 
as the exhibits in individual company 
statements: 

(i) Page 2 (Assets); 

(ii) Page 3 (Liabilities, Surplus and Other 

Funds); 
(iii) Page 4 (Underwriting and Investment 

Exhibit); 



35 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



(iv) Exhibit 1 (Analysis of Assets); 
(v) Schedule P sections dealing with work- 
ers' compensation. 

(11) Identification and Certification of Statis- 
tical Plans. 

(a) All statistical plans used or consulted in 
preparing this filing shall be identified. 
Also describe the data compiled by each 
plan. 

(b) A certification that all the data utilized in 
the rate filing was collected in accordance 
with such plans and is a true and accurate 
representation of each company's experi- 
ence to the best of their knowledge shall 
also be provided. 

(12) Investment Earnings on Capital and Sur- 
plus. Given the selected underwriting profit 
and contingency loading contained in the 
filing, the resulting rates of return on equity 
capital, on total assets, and on assets as- 
signed to insurance operations including 
consideration of investment income shall be 
calculated. Show the derivation of all fac- 
tors used in producing these calculations and 
provide justification that these rates of re- 
turn are reasonable and fair. 

(13) Level of Capital/Surplus Needed. To 
calculate returns on capital and surplus, the 
following information shall be provided. 

(a) Aggregate premium to surplus ratios for 
the latest five calendar years for all com- 
panies writing workers' compensation in- 
surance in North Carolina; 

(b) Estimates of comparable ratios for the 
years during which the rates will be in ef- 
fect. 

(14) Other Information. 

(a) Information on certain aspects of Workers' 
Compensation Individual Risk Rating 
Plans shall also be provided. For the fol- 
lowing items, include an explanation of 
their purpose and a detailed description 
of their derivation: 

(i) Expected loss rate; 

(ii) D- Ratio; 

(iii) Excess loss factors; 

(iv) Excess loss adjustment amounts; 

(v) Table of weighting and ballast values. 

(b) All information on the various preliminary 
and intermediate steps taken in preparing 
the filing shall be included with it. The 
following information shall be included: 

(i) Agendas and minutes of meetings of the 
North Carolina Rate Bureau affecting the 
filing. Include a list of all attendees at 
these meetings, their titles, and their affil- 
iations. 



(ii) Agendas and minutes of meetings of the 
National Council on Compensation In- 
surance affecting the filing explicitly, or 
implicitly through the adoption of a 
countrywide procedure. Include a list of 
all attendees at these meetings, their titles, 
and their affiliations. 

(iii) Correspondence between the above 
two entities and between each of the enti- 
ties and its consultants affecting the filing. 

(iv) Contracts and agreements between the 
above two entities relating to the filing or 
its preparation. 

(v) Payments to the National Council on 
Compensation related to this filing and 
the prior one. 

(vi) Payments to any other consultants (in- 
cluding lawyers, actuaries, and econo- 
mists) related to this filing and the prior 
one. 

(c) All information relating to the derivation 
of the profit and contingency loading 
contained in the filing shall be provided. 
The following information shall be in- 
cluded: 

(i) All data reviewed and worksheets used; 

(ii) A complete description of the method- 
ology used to arrive at the selected load- 
ing; 

(iii) A description of alternative methodol- 
ogies used or considered for use by the 
National Council on Compensation In- 
surance in other states; 

(iv) A description of the criteria used to se- 
lect one of the various methodologies for 
inclusion in a particular filing; 

(v) Specific details regarding the application 
of these criteria in the selection of a 
methodology for this filing; 

(vi) Details on the application of the meth- 
odology to this filing. 

(d) Information shall also be provided on all 
filings by the National Council on Com- 
pensation Insurance that have been sub- 
mitted with an underwriting profit and 
contingency loading other than 2.5 per- 
cent or that have been approved with a 
provision other than 2.5 percent. For all 
such filings in the last five years, list the 
state, the underwriting profit and contin- 
gency loading submitted, the loading ap- 
proved, and the effective date of the rates. 

(15) Additional Information. The commis- 
sioner may require such other information 
as he deems necessary to constitute a proper 
rate filing. 

Statutory Authority G.S. 58-9; 58-124.20(h). 



NORTH CAROLINA REGISTER 



36 



PROPOSED RULES 



.1 104 NONFLEET PRIVATE PASSENGER 
AUTOMOBILE 

The information required by N.C.G.S. 
58- 124.20(h) for nonfleet private passenger auto- 
mobile rate filings shall be presented as follows: 
Note: If in addition to the full years of data spe- 
cified in any of the below requests, more recent 
data of less than a full year is available, that data 
shall also be provided. 
(1) North Carolina premium, loss and loss 
adjustment experience; 

(a) Data from all companies writing nonfleet 
private passenger automobile insurance in 
North Carolina shall be included in the 
rate filmg. If a company is excluded from 
the rate level, trend, loss development, 
excess loss factor, expense determination, 
territorial development, or mvestment in- 
come calculations for any coverage, iden- 
tify the coverage, the company and its 
marketshare and provide an explanation 
for its exclusion. 

(b) For each coverage, premium at present 
rates shall be calculated. Indicate how 
such calculations were produced and sup- 
ply supporting documentation for a sam- 
ple of such calculations and justification 
of any aggregate factors used. 

(c) The latest earned premiums and markets- 
hares for the ten largest private passenger 
insurers in North Carolina shall be pro- 
vided. 

(d) Information from the Armual Statement 
on losses and premiums shall be included. 
Provide such information separately for 
the latest two Annual Statements includ- 
ing the following items on a composite 
basis for all nonfleet private passenger in- 
surers in North Carolina: 

(i) North Carolina Page 14, Lines 19.1, 

19.2, and 21.1; 
(ii) Part 2, Lmes 19 and 21; 
(iii) Part 2B, Lines 19 and 21; 
(iv) Part 3A, Lines 19 and 21. 

(e) The following information on companies 
deviating from Bureau nonfleet private 
passenger rates shall be mcluded for each 
of the latest five years by coverage: 

(i) A list of all deviating companies; 

(ii) The total manual premium written at 
deviated rates; 

(iii) The percentage of the entire statewide 
premium written at deviated rates; 

(iv) The total amount of deviations in dol- 
lars; 

(v) The average percentage deviation for 
deviating companies; 



(vi) The average percentage deviation for 
all companies, 
(f) The following information on companies 
issuing consent to rate surcharges for 
nonfleet private passenger automobile 
rates by physical damage coverage shall 
be included for each of the latest five 
years: 

i) A list of all issuing companies; 

ii) The total manual premium written for 
risks that have such surcharges; 

iii) The percentage of the entire statewide 
premium written on risks with surcharges; 

iv) The total amount of the surcharges in 
dollars; 

v) The average percentage surcharge for 
companies issuing surcharges; 

vi) The average percentage surcharge for 
all companies. 

The following information on companies 
issuing dividends on nonfleet private pas- 
senger automobile policies shall be in- 
cluded for each of the latest five years: 

i) A list of all companies issuing dividends; 

ii) The total manual premium written on 
policies on which dividends were issued; 

iii) The percentage of the entire statewide 
premium written on policies on which di- 
vidends were issued; 

iv) The total amount of dividends in dol- 
lars; 

v) The average percentage dividend for 
companies issuing dividends; 

vi) The average percentage dividend for all 
companies, 
(h) For each coverage and each year used in 
setting the overall rate level, the following 
information on dollars of incurred losses 
shall be provided: 

i) Paid losses; 

ii) Case basis reser\'es; 

iii) Loss development; 

iv) Incurred allocated loss adjustment ex- 
pense; 

v) Incurred unallocated loss adjustment 
expense; 

vi) Applied trend factor; 

vii) Total incurred losses, 
(i) Whenever North Carolina losses are sepa- 
rated into excess (catastrophe) and non- 
excess (noncatastrophe) losses, a clear 
description and justification of the stand- 
ard used to separate such losses shall be 
includ-^d. In determining an excess (ca- 
tastrophe) loading, include as many years 
of data as possible. If the number of years 
included differs from the number avail- 
able, provide an explanation. Also pro- 



37 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



vide an explanation if the data from which 
the excess loading is derived differs from 
that on which the rate level change is 
based, 
(j) Territorial rate calculations shall include 
written premiums, earned premiums, paid 
losses, incurred losses, and the number of 
claims by territory for each of the years 
used to determine the territorial relativi- 
ties, 
(k) All information related to the derivation 
of classification differentials contained in 
the filing should be provided. The fol- 
lowing information shall be included: 

(i) All data reviewed and worksheets used; 

(ii) A complete description of the method- 
ology used to arrive at the differentials; 

(iii) A description of alternative methodol- 
ogies used or considered for use by the 
Insurance Ser\'ices Office in other states; 

(iv) A description of the criteria used to se- 
lect one of the various methodologies for 
inclusion in a particular filing; 

(v) Specific details regarding the application 
of these criteria in the selection of a 
methodology for this filing; 

(vi) Details on the application of the meth- 
odology to this filing. 

(1) For all incurred loss adjustment expense 
data contained in the filing, the related 
incurred losses shaU be shown. 

(2) Credibility factor development and appli- 
cation. All information related to the deri- 
vation of credibility factors contained in the 
fding should be provided. The following 
information shall be included: 

(a) AH data reviewed and worksheets used; 

(b) A complete description of the methodol- 
ogy used to derive the factors; 

(c) A description of alternative methodologies 
used or considered for use by the Insur- 
ance Services Office in other states; 

(d) A description of the criteria used to select 
one of the various methodologies for in- 
clusion in a particular filing; 

(e) Specific details regarding the application 
of these criteria in the selection of a 
methodology for this filing; 

(f) Details on the application of the method- 
ology to this filing. 

(3) Loss development factor development and 
application. 

(a) All information related to the derivation 
of loss development factors contained in 
the filing shall be provided. The following 
information shall be included: 
(i) All data reviewed and worksheets used; 



(ii) A complete description of the method- 
ology used to derive the factors; 

(iii) A description of alternative methodol- 
ogies used or considered for use by the 
Insurance Services Office in other states; 

(iv) A description of the criteria used to se- 
lect one of the various methodologies for 
inclusion in a particular filing; 

(v) Specific details regarding the application 
of these criteria in the selection of a 
methodology for this filing; 

(vi) Details on the application of the meth- 
odology to this filing. 

(b) Provide for each coverage complete (in- 
cluding the upper left portion) total limits 
paid loss development triangles for the ten 
latest available accident years at all avail- 
able development points. Also provide 
the corresponding loss development fac- 
tors and five-year average factors derivable 
from these triangles. 

(c) Provide the information in (b) for basic 
limits paid losses. 

(d) Provide the information in (b) and (c) for 
incurred losses. 

(e) Provide the information in (b) for the 
number of paid claims. 

(f) Provide the information in (b) for the 
number of outstanding claims. 

(g) Provide the information in (b), (c), (d), (e), 
and (f) separately for voluntary and ceded 
business. 

(4) Trending factor development and applica- 
tion. 

(a) The following trend data, shown sepa- 
rately for frequency and severity, for the 
latest available five years shall be included 
in the filing for all coverages both coun- 
trywide and for North Carolina: 

(i) Fast-track loss data; 
(ii) All internal loss trend data; 
(iii) Internal and external expense trend 
data. 

(b) For all trend data described above, annual 
trend factors shaU be calculated and coef- 
ficients of correlations determined. 

(i) Include calculations for the latest 6, 9, 
12 and 15-point periods. 

(ii) Include calculations on both an expo- 
nential and straight line basis. 

(c) All information related to the derivation 
of trend factors contained in the filing 
shall be provided. The following infor- 
mation shall be included: 

(i) All data reviewed and worksheets used; 
(ii) A complete description of the method- 
ology used to derive the factors; 



NORTH CAROLINA REGISTER 



38 



PROPOSED RULES 



(iii) A description of alternative methodol- 
ogies used or considered for use by the 
Insurance Services Ofiice in other states; 

(iv) A description of the criteria used to se- 
lect one of the various methodologies for 
inclusion in a particular filing; 

(v) Specific details regarding the application 
of these criteria in the selection of a 
methodology for this filing; 

(vi) Details on the application of the meth- 
odology to this filing, 
(d) Information, including studies, analyses, 
and fact sheets, regarding the effects (both 
countrywide and in North Carolina) of 
the following items shall be provided. If 
the effects have been incorporated into the 
rate filing, describe in detail the method- 
ologies used. 

(i) Changes in seat belt use; 

(ii) Changes in drinking age; 

(iii) Changes in the price and amount pur- 
chased of gasoline; 

(iv) Changes in the average monthly miles 
traveled by individual drivers; 

(v) Other legislative, regulatory, social, or 
economic factors that could have an im- 
pact on loss frequency or severity. 

(5) Changes in premium base and exposures. 

(a) Data on the mix of policies by different 
policy terms shall be submitted. For the 
latest five years, include both the number 
of policies and the amount of earned pre- 
mium for different policy terms. 

(b) Data on age and symbol relativities shall 
be submitted. Submit all information 
available on such relativities for the latest 
five years. 

(c) The trend in the average age and symbol 
relativities shall be calculated and included 
in the determination of the rate level 
change for physical damage coverages. 
Explain how this trend was calculated and 
provide all intermediate calculations. 

(6) Limiting factor development and applica- 
tion. Information on the following items 
shall be provided: 

(a) Limitations on losses included in the sta- 
tistical data used in the filing; 

(b) Limitations on the extent of the rate level 
change by coverage; 

(c) Limitations on the extent of territorial rate 
changes; 

(d) Any other limitations applied. 

(7) Expenses. 

(a) All information related to the derivation 
of expense provisions contained in the fil- 
ing shall be pro\ided. The following in- 
formation shall be included: 



(i) All data reviewed and worksheets used; 

(ii) A complete description of the method- 
ology used to derive the provisions; 

(iii) A description of alternative methodol- 
ogies used or considered for use by the 
Insurance Services Office in other states; 

(iv) A description of the criteria used to se- 
lect one of the various methodologies for 
inclusion in a particular filing; 

(v) Specific details regarding the application 
of these criteria in the selection of a 
methodology for this filing; 

(vi) Details on the application of the meth- 
odology to this filing. 

(b) Earned premium and unallocated loss ad- 
justment expenses for each of the latest 
five years shall be included. If available, 
provide such information by coverage and 
groups of coverages. 

(c) Number of claims (all limits and all de- 
ductibles) by coverage and allocated loss 
adjustment expenses for each of the last 
five years shall also be included. If avail- 
able, provide such information by cover- 
age and groups of coverages. 

(d) For each of ten largest writers of private 
passenger automobile insurance in North 
Carolina, statements regarding any ex- 
pense cutting activities undertaken in the 
last five years shall be provided. 

(8) The percent rate change. 

(a) The overall statewide rate change shall be 
shown as well as the amount of the 
change attributable to each of the follow- 
ing: loss experience, the trend factor, a 
change in expense provisions, law 
changes, a change in the tax provision, a 
change in the assessment provision, and 
other changes. 

(b) The information described in (a) shall also 
be provided by coverage and for physical 
damage coverages by deductible. 

(9) Proposed rates. 

(a) Proposed rates for each territory and cov- 
erage shall be provided. 

(b) Proposed classification differentials shall 
also be described. Also include an expla- 
nation of how classification rates are de- 
termined and a sample calculation. 

(10) Investment earnings. Information on an- 
ticipated investment income is necessary to 
establish the provision for underwriting 
profit in the rates, 
(a) Information on the amount of investment 
income earned on loss, loss expense, and 
unearned premium reser\'es in relation to 
earned premium for private passenger au- 
tomobile in North Carolina shall be cal- 



39 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



culated for the latest two years and 
estimated for the cuirent year and all years 
during which the proposed rates will be in 
effect. Calculations shall be provided in 
detail including the amount of the com- 
posite reserves of each type at the begin- 
ning and end of each of the specified 
years. 

(b) Information on the estimated average 
length of time that elapses between the 
occurrence of an insured loss and its pay- 
ment shall be provided by coverage. The 
average shall be a weighted average based 
on the size of claim payments. Indicate 
how the length by coverage has changed 
over the last five years. 

(c) To evaluate recent insurer profitability, 
composite information from the Annual 
Statement for all insurers writing nonileet 
private passenger automobile insurance in 
North Carolina shall be included. Pro- 
vide the following information from the 
latest two Annual Statements in the same 
format and detail as the exhibits in indi- 
vidual company statements: 

(i) Page 2 (Assets); 

(ii) Page 3 (Liabilities, Surplus and Other 

Funds); 
(iii) Page 4 (Underwriting and Investment 

Exhibit); 
(iv) Exhibit 1 (Analysis of Assets). 

(11) Identification and Certification of Statis- 
tical Plans. 

(a) All statistical plans used or consulted in 
preparing this filing shall be identified. 
Also describe the data compiled by each 
plan. 

(b) A certification that all the data utilized in 
the rate filing was collected in accordance 
with such plans and is a true and accurate 
representation of each company's experi- 
ence to the best of their knowledge shall 
also be provided. 

(12) Investment Earnings on Capital and Sur- 
plus. Given the selected underwriting profit 
and contingencies loadings contained in the 
filing, indicate the resulting rate of return on 
equity capital, on total assets, and on assets 
assigned to insurance operations including 
consideration of investment income. Show 
the derivation of all factors used in produc- 
ing the calculations. Provide justification 
that these rates of retum are reasonable and 
fair. 

(13) Level of Capital/Surplus Needed. 

(a) Aggregate premium to surplus ratios for 
the latest three calendar years for all com- 
panies writing nonflect private passenger 



automobile insurance in North Carolina 
shall be included, 
(b) Estimates of comparable ratios for the 
years during which the rates will be in ef- 
fect shall also be provided. 

(14) Other Information. 

(a) All information on the various preliminary 
and intermediate steps taken in preparing 
the fding shall be included with it. This 
would include among other things, the 
following items: 

(i) Agendas and minutes of the North Ca- 
rolina Rate Bureau affecting the filing. 
Include a list of all attendees at these 
meetings, their titles, and their affiliations. 

(ii) Agendas and minutes of meetings of the 
Insurance Services Offices affecting the 
filing explicitly or impficitly through the 
adoption of a countrywide procedure. 
Include a list of all attendees at these 
meetings, their titles, and their affiliations. 

(iii) Correspondence between the above 
two entities and between one of the enti- 
ties and its consultants affecting the filing. 

(iv) Contracts and agreements between the 
above two entities relating to the filing or 
its preparation. 

(v) Payments to the Insurance Services Of- 
fice related to this fding and the prior one. 

(vi) Payments to other consultants (includ- 
ing lawyers, actuaries, and economists) 
related to this filing and the prior one. 

(b) All information related to the derivation 
of the profit and contingency loading 
contained in the filing should be provided. 
The following information shall be in- 
cluded: 

(i) All data reviewed and worksheets used; 

(ii) A complete description of the method- 
ology used to arrive at the selected load- 
ing; 

(iii) A description of alternative methodol- 
ogies used or considered for use by the 
Insurance Services Office in other states; 

(iv) A description of the criteria used to se- 
lect one of the various methodologies for 
inclusion in a particular fding; 

(v) Special details regarding the appfication 
of these criteria in the selection of a 
methodology for this filing; 

(vi) Detads on the application of the meth- 
odology to this fding. 

(15) Additional Information. The commis- 
sioner may require such other information 
as he deems necessary to constitute a proper 
rate filing. 

Statutory Authority G.S. 5S-9; 58-/24. 20(h). 



NORTH CAROLINA REGISTER 



40 



PROPOSED RULES 



.1 105 OTHER RATE BUREAU LINES 

The information required by N.C.G.S. 
58- 124.20(h) shall be presented as follows: 
Note: If in addition to the full years of data spe- 
cified in any of the below requests, more recent 
data of less than a full year is available, that data 
shall also be provided. 
(1) North Carolina premium, loss and loss 
adjustment experience; 

(a) Data from all companies writing a cover- 
age in North CaroUna shall be included in 
the rate filing. If a company is excluded 
from the rate level, trend, loss develop- 
ment, excess loss factor, expense determi- 
nation, territorial development, or 
in\'estment income calculations for any 
coverage, identify the line or co%'erage, the 
company and its marketshare and provide 
an explanation for its exclusion. 

(b) Only data from coverages under the North 
Carolina Rate Bureau's jurisdiction shall 
be included in the rate level determi- 
nation. Indicate if and how non- Bureau 
data has been excluded from package 
pohcies. Also indicate if and how such 
data has had an effect on the fiHng (e.g., 
trend, expense provisions, etc.). 

(c) If data from monoUne coverages is used in 
the determination of package rate levels 
or vice versa, the foUowmg information 
shall be provided: 

(i) A clear description of the differences 
between the types of data; 

(ii) A description of which causes of loss 
are included or excluded; 

(iii) Information on whether both types of 
experience are for the same companies; 

(iv) Comparable loss data for all years. 
(For example, if monohne experience be- 
fore a certain date supplements package 
experience after that date, also include the 
monoline experience after that date.) 

(d) Adjustments made to premiums and losses 
in the filing shall be clearly described. 
Show the unadjusted amounts to which 
adjustments were made, identify the spe- 
cific adjustments, provide details on the 
derivation, calculation, and application of 
the adjustment factors, and include 
backup exhibits and information on all 
intermediate calculations. 

(e) For each coverage, premium at present 
rates shall be calculated. Indicate how 
such calculations were produced and sup- 
ply supporting documentation for a sam- 
ple of such calculations and justification 
of any aggregate factors used. 



(f) The latest earned premiums and markets- 
hares for the ten largest writers in North 
Carolina of each coverage included in the 
filing shall be provided. 

(g) Information from the Aimual Statement 
on losses and premiums shall be included. 
Provide such information separately for 
the latest two Annual Statements includ- 
ing the following items for each line in- 
cluded in the filing on a composite basis 
for all insurers writing each included in the 
filing in North Carolina: 

(i) North Carolina Page 14; 

(ii) Part 2; 

(iii) Part 2B; 

(iv) Part 3A. 
(h) The following information on companies 
deviating from Bureau rates for each cov- 
erage included in the filing shall be in- 
cluded for each of the latest five years: 

(i) A list of all deviating companies; 

(ii) The total manual premium written at 
deviated rates; 

(iii) The percentage of the entire statewide 
premium written at deviated rates; 

(iv) The total amount of deviations in dol- 
lars; 

(v) The average percentage deviation for 
deviating companies; 

(vi) The average percentage deviation for 
all companies, 
(i) The following information on companies 
issuing dividends on policies covered by 
the filing shall be included for each of the 
latest five years: 

(i) A list of all companies issuing dividends; 

(ii) The total manual premium written on 
policies on which dividends were issued; 

(iii) The percentage of the entire statewide 
premium written on policies on which di- 
vidends were issued; 

(iv) The total amount of dividends in dol- 
lars; 

(v) The average percentage dividend for 
companies issuing dividends; 

(vi) The average percentage dividend for all 
companies, 
(j) For each coverage and each year used in 
setting the overall rate level, the following 
information on dollars of incurred losses 
shall be provided: 

(i) Paid losses; 

(ii) Case basis reser\es; 

(iii) Loss development; 

(iv) Incurred allocated loss adjustment ex- 
pense; 

(v) Incurred unallocated loss adjustment 
expense; 



41 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



(vi) Applied trend factor; 

(vii) Trended total incurred losses and LAE. 
(k) Whenever North Carolina losses are sep- 
arated into excess (catastrophe) and non- 
excess (noncatastrophe) losses, the 
following information shall be included: 

(i) All data reviewed and worksheets used; 

(ii) A complete description of the method- 
ology used to arrive at the selected load- 
ing; 

(iii) A description of alternative methodol- 
ogies used or considered for use by the 
Insurance Services Office in other states; 

(iv) A description of the criteria used to se- 
lect one of the various methodologies for 
inclusion in a particular filing; 

(v) Specific details regarding the application 
of these criteria in the selection of a 
methodology for this filing; 

(vi) Details on the application of the meth- 
odology to this filing including the reasons 
for selecting the number of years of expe- 
rience used. 
(1) Details on the perils that produced excess 
losses shall be provided, including the fol- 
lowing; 

(i) Identification of the severe windstorm 
occurrences that took place during years 
with excess losses; 

(ii) The percentage of each year's losses that 
can be assigned to such occurrences (on 
an individual storm basis); 

(iii) The extent to which the excess losses 
reflect an increase in frequency or an in- 
crease in severity; 

(iv) The territorial distribution of wind- 
storm losses during those years, 
(m) All available loss data by cause of loss 
shall be provided. Provide this in as 
much statistical detail as is available and 
indicate whether adjustment procedures 
or factors were applied to the separated 
data, 
(n) Territorial rate calculations shall include 
written premiums, earned premiums, paid 
losses, incurred losses, and the number of 
claims by territory for each of the years 
used to determine the territorial relativi- 
ties, 
(o) Premium distribution by territory shall 
also be included for the years whose ex- 
perience is used in the calculation of the 
excess multiplier, 
(p) For all incurred loss adjustment expense 
data contained in the filing, the related 
incurred losses shall be shown, 
(q) If premium comparisons with other states 
are included, five-year loss ratios for the 



particular policy form, construction type, 
etc. used in the comparison shall be in- 
cluded. Also provide five-year statewide 
loss ratios. 

(2) Credibility factor development and appli- 
cation. All information related to the deri- 
vation of credibility factors contained in the 
filing should be provided. The following 
information shall be included: 

(a) All data reviewed and worksheets used; 

(b) A complete description of the methodol- 
ogy used to arrive at the selected loading; 

(c) A description of alternative methodologies 
used or considered for use by the Insur- 
ance Services Office in other states; 

(d) A description of the criteria used to select 
one of the various methodologies for in- 
clusion in a particular filing; 

(e) Specific details regarding the apphcation 
of these criteria in the selection of a 
methodology for this filing; 

(f) Details on the application of the method- 
ology to this filing. 

(3) Loss development factor development and 
application. 

(a) All information related to the derivation 
of loss development factors contained in 
the filing shall be provided. The following 
information shall be included: 

(i) All data reviewed and worksheets used; 

(ii) A complete description of the method- 
ology used to arrive at the selected load- 
ing; 

(iii) A description of alternative methodol- 
ogies used or considered for use by the 
Insurance Services Office in other states; 

(iv) A description of the criteria used to se- 
lect one of the various methodologies for 
inclusion in a particular filing; 

(v) Specific details regarding the application 
of these criteria in the selection of a 
methodology for this filing; 

(vi) Details on the application of the meth- 
odology to this filing. 

(b) Provide for each coverage included in the 
filing complete (including the upper left 
fKDrtion) paid loss development triangles 
for the ten latest available accident years 
at all available development points. Also 
provide the corresponding loss develop- 
ment factors and five-year average factors 
derivable from these triangles. 

(c) Provide the same information in (b) for 
incurred losses. 

(d) Provide the same information in (b) for 
number of paid claims. 

(e) Provide the same information in (b) for 
number of outstanding claims. 



NORTH CAROLINA REGISTER 



42 



PROPOSED RULES 



(f) If available, provide the information in (b), 

(c), (d), and (e) by cause of loss. 

(g) For each of the ten largest writers of each 
co\erage included in the filing, a statement 
regarding any reser\'e strengthening that 
has occurred in the last five years shall be 
included. 

(4) Trending factor development and applica- 
tion. 

(a) For the latest five years, all available in- 
dustry data on changes in loss frequency 
and severity, by cause of loss, for losses 
for each coverage included in the filing 
shall be provided. Include both country- 
wide and North Carolina data. 

(b) .\11 information related to the derivation 
of loss trend factors contained in the filing 
shall be provided. This information 
should include at a minimum the follow- 
ing: 

(i) All data reviewed and worksheets used; 

(ii) A complete description of the method- 
ology used to arrive at the selected factors; 

(iii) A description of alternative methodol- 
ogies used or considered for use by the 
Insurance Services Office in other states; 

(iv) A description of the criteria used to se- 
lect one of the various methodologies for 
inclusion in a particular filing; 

(v) Specific details regarding the application 
of these criteria in the selection of a 
methodologs' for this fiJing; 

(vi) Details on the application of the meth- 
odology to this filing. 

(c) If extemal indices are used for trending 
purposes, pro\'ide evidence that such in- 
dices are good indicators of the selected 
cost changes, including comparisons be- 
tween the actual changes in loss costs and 
those estimated by the indices. Indicate 
whether any consideration has been given 
to the possibility that the indices lag be- 
hind the actual data. 

(5) Changes in premium base and exposures. 

(a) Data on the mix of policies by different 
poUcy terms shall be submitted. For the 
latest five years, include both the number 
of policies and the amount of earned pre- 
mium for different policy terms. Also es- 
timate these distributions during the 
period when the rates are in effect. 

(b) Information on what payment options are 
currently available and have been avail- 
able for the latest five years shall be in- 
cluded. Provide the number of policies 
and earned premium amounts for each 
during that period. .-Mso estimate these 



distributions during the period when the 
rates are in effect. 

(c) All information related to the derivation 
of premium trend factors contained in the 
filing shall be provided. This information 
should include at a minimum the foUow- 
ing: 

(i) All data reviewed and worksheets used; 

(ii) A complete description of the method- 
ology used to arrive at the selected factors; 

(iii) A description of alternative methodol- 
ogies used or considered for use by the 
Insurance Services Office in other states; 

(iv) A description of the criteria used to se- 
lect one of the various methodologies for 
inclusion in a particular filing; 

(v) Specific details regarding the application 
of these criteria in the selection of a 
methodology for this filing; 

(vi) Details on the appHcation of the meth- 
odology to this fiHng. 

(d) All available information on changes in 
construction that would affect the expo- 
sure to windstorm losses during the years 
on which the excess multiplier is based 
shall be provided. 

(6) Limiting factor development and applica- 
tion. Information on the following items 
shall be provided: 

(a) Limitations on losses included in the sta- 
tistical data used in the filing; 

(b) Limitations on the extent of the rate level 
change by coverage; 

(c) Limitations on the extent of territorial rate 
changes; 

(d) Any other limitations applied. 

(7) Expenses. 

(a) All information related to the derivation 
of expense provisions contained in the fil- 
ing shall be provided. This following in- 
formation shall be included: 

(i) All data reviewed and worksheets used; 

(ii) A complete description of the method- 
ology used to arrive at the selected load- 
ing; 

(iii) A description of alternative methodol- 
ogies used or considered for use by the 
Insurance Services Office in other states; 

(iv) A description of the criteria used to se- 
lect one of the various methodologies for 
inclusion in a particular filing; 

(v) Specific details regardmg the application 
of these criteria in the selection of a 
methodology for this filing; 

(vi) Details on the application of the meth- 
odology' to this filing. 

(b) Earned premium and unallocated loss ad- 
justment expenses by coverage for each 



43 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



of the latest five years shall be provided 
included in the fding. 

(c) Number of claims by coverage and allo- 
cated loss adjustment expenses for each 
of the last five years shall also be included. 

(d) For each of ten largest writers of a line or 
coverage in North Carolina, statements 
regarding any expense cutting activities 
undertaken in the last five years shall be 
provided. 

(8) The percent rate change. The overall 
statewide rate change by coverage shall be 
shown as well as the amount of the change 
attributable to each of the following: loss 
experience, the trend factor, a change in ex- 
pense provisions, law changes, a change in 
the tax provision, a change in the assessment 
provision, and other changes. 

(9) Proposed rates. Proposed average rates for 
each coverage, coverage amount, form, and 
group shall be provided. (In filings involv- 
ing a large number of possible rates, infor- 
mation on rating factors and their 
application may be substituted for the actual 
rates.) 

(10) Investment earnings. Information on an- 
ticipated investment income is necessary to 
establish the provision for underwriting 
profit and contingencies in the rates. 

(a) Information on the amount of investment 
income earned on loss, loss expense, and 
unearned premium reserves in relation to 
earned premium for a line or coverage in 
North Carolina shall be calculated for the 
latest two years and estimated for the 
current year and all years during which the 
proposed rates will be in effect. Calcu- 
lations shall be provided in detail includ- 
ing the amount of the composite reserves 
of each type at the beginning and end of 
each of the specified years. 

(b) Information on the estimated average 
length of time that elapses between the 
occurrence of an insured loss and its pay- 
ment shall be provided by coverage. The 
average shall be a weighted average based 
on size of claim payments. Indicate how 
the length by coverage has changed over 
the last five years. 

(c) To evaluate recent insurer profitability, 
composite information from the Aimual 
Statement for all insurers writing those 
lines included in the filing in North Caro- 
lina shall be included. Provide the fol- 
lowing information from the latest two 
Aimual Statements in the same format 
and detail as the exhibits in individual 
company statements: 



(i) Page 2 (Assets); 

(ii) Page 3 (Liabilities, Surplus and Other 

Fimds); 
(iii) Page 4 (Underwriting and Investment 

Exhibit); 
(iv) Exhibit 1 (Analysis of Assets). 

(11) Identification and Certification of Statis- 
tical Plans. 

(a) AH statistical plans used or consulted in 
preparing this filing shall be identified. 
Also describe the data compiled by each 
plan. 

(b) A certification that all the data utilized in 
the rate filing was collected in accordance 
with such plans and is a true and accurate 
representation of each company's experi- 
ence to the best of their knowledge shall 
also be provided. 

(12) Investment Earnings on Capital and Sur- 
plus. Given the selected underwriting profit 
and contingencies loading(s) contained in 
the filing, indicate the resulting rate of return 
on equity capital, on total assets, and on as- 
sets assigned to insurance operations includ- 
ing consideration of investment income. 
Show the derivation of all factors used in 
producing the calculations. Provide justi- 
fication that these rates of return are rea- 
sonable and fair. 

(13) Level of Capital/Surplus Needed. 

(a) Aggregate premium to surplus ratios for 
the latest three calendar years for all com- 
panies writing the coverages included in 
the filing in North Carolina shall be pro- 
vided. 

(b) Estimates of comparable ratios for the 
years during which the rates will be in ef- 
fect shall also be provided. 

(14) Other Information. 

(a) All information on the various preliminary 
and intermediate steps taken in preparing 
the filing shall be included with it. This 
would include among other things, the 
following items: 

(i) Agendas and minutes of the North Ca- 
rolina Rate Bureau affecting the filing. 
Include a list of all attendees at these 
meetings, their titles, and their affiliations. 

(ii) Agendas and minutes of meetings of the 
Insurance Services Offices affecting the 
filing explicitly or implicitly through the 
adoption of a countrywide procedure. 
Include a list of all attendees at these 
meetings, their titles, and their affiliations. 

(iii) Correspondence between the above 
two entities or between an entity and its 
consultants affecting the filing. 



NORTH CAROLINA REGISTER 



44 



PROPOSED RULES 



(iv) Contracts and agreements between the 
above two entities or betv/een an entity 
and its consultants relating to the filing or 
its preparation. 

(v) Payments to the Insurance Services Of- 
fice related to this filing and the prior one. 

(vi) Payments to other consultants (includ- 
ing lav\'yers, actuaries, and economists) 
related to this filing and the prior one. 
(b) All information related to the derivation 
of the profit and contingency loading(s) 
contained in the fding should be provided. 
The following information shall be in- 
cluded: 

(i) All data reviewed and worksheets used; 

(ii) A complete description of the method- 
ology used to arrive at the selected load- 
ing; 

(iii) A description of alternative methodol- 
ogies used or considered for use by the 
Insurance Services Office in other states; 

(iv) A description of the criteria used to se- 
lect one of the various methodologies for 
inclusion in a particular filing; 

(v) Specific details regarding the application 
of these criteria in the selection of a 
methodology for this filing; 

(vi) Details on the application of the meth- 
odology to this filing. 
(15) Additional Information. The commis- 
sioner may require such other information 

as he deems necessary to constitute a proper 

rate fding. 

Statutory Authority G.S. 58-9; 58-l24.20(h). 

.1 106 DEMATIONS FROM R.\TES OF THE 
NORTH CAROLINA RATE BUREAU 

(a) Filing Guidelines. 

(1) /VU rate deviation fdings must be made in 
triphcate. 

(A) Send the original and one copy to the 
department. 

(B) Send the second copy to the North 
Carolina Rate Bureau. 

(2) A rate deviation shall be fded, modified, 
or withdrawn on an indi\idual company 
basis even if the company is part of a 
group. 

(3) AH proposed rate deviations shall be ex- 
pressed in terms of North Carolina Rate 
Bureau rates, either as percentages or dol- 
lar amounts. 

(4) Filing requirements differ by type of de- 
viation action: 

(A) To introduce a deviation, see section 

(B) To modify a deviation, see section (4). 



(C) To withdraw a deviation, see section 

(b) Application of Deviations. 

(1) On approval of the introduction, modifi- 
cation, or withdrawal of one or more rate 
deviations, the department shall transmit 
to the company a letter of approval listing 
all the rate deviations in effect for that line 
and company. All deviations listed shall 
be applied to all eligible insureds and de- 
viations not listed shall not be applied to 
any insured. 

(2) Rate deviations remain in effect until 
modified or withdrawal. 

(3) Modifications of existing rate deviations 
are permitted at any time. 

(4) An unmodified rate deviation may be 
withdrawn only if both of the foUowing 
conditions have been met: 

(A) The deviation has been in effect for at 
least six months. 

(B) Apphcation for withdrawal is submitted 
to the department 15 days before the pro- 
posed withdrawal date. 

(5) A modified rate deviation may be with- 
drawn only if both of the foUowing con- 
ditions have been met: 

(A) The deviation has been in effect for at 
least six months since the date of the last 
modification. 

(B) Application for withdrawal is submitted 
to the department 1 5 days before the pro- 
posed withdrawal date. 

(c) Filings for new rate deviations. Filings for 
new deviations shall contain only the following 
information: 

(1) A cover letter containing the following: 

(A) Company name; 

(B) Company NAIC number; 

(C) Line of business involved; 

(D) A brief descriptive sentence of each 
deviation to be introduced; 

(E) Proposed effective date. 

(2) A separate exception page for each pro- 
posed deviation (Do not submit manual 
pages.) 

(3) A completed deviation questionnaire ob- 
tained from the Fire and Casualty Divi- 
sion. 

(4) A completed operating profitability form 
obtained from the Fire and Casualty Di- 
vision. 

(d) Filings for modifications of rate deviations. 
Filings for modifications of deviations shall con- 
tain only the following information: 

(1) A cover letter containing the foUowing: 

(A) Company name; 

(B) Company NAIC Number; 



45 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



(C) Line of business involved; 

(D) Department file number; 

(E) A brief descriptive sentence on each of 
the deviations to be modified; 

(F) A brief descriptive sentence on each of 
the unmodified deviations that remain in 
effect; 

(G) Proposed effective date. 

(2) Separate exception pages for all deviation 
that will be in effect as of the proposed 
effective date (Do not submit mjmual 
pages.) 

(3) A completed deviation questionnaire ob- 
tained from the Fire and Casualty Divi- 
sion. 

(4) A completed operating profitability form 
obtained from the Fire and Casualty Di- 
vision. 

(e) Filing letters for withdrawals of rate devi- 
ations. Filing letters for withdrawal shall contain 
only the following information: 

(1) A cover letter including the following in- 
formation: 

(A) Company name; 

(B) Company NAIC number; 

(C) Line of business involved; 

(D) Department file number; 

(E) A brief descriptive sentence of each de- 
viation to be withdrawn; 

(F) Proposed effective date. 

(2) A statement that the deviation has been 
in effect for at least six months. 

(f) Deviation questionnaire. The deviation 
questionnaire shall contain the following infor- 
mation: 

(1) Company name; 

(2) DateoffiUng; 

(3) Company NAIC number; 

(4) Company fde number; 

(5) Line of insurance; 

(6) Program title; 

(7) Department file number, if applicable; 

(8) Number of policies written in North Ca- 
rolina for each of the last five years that 
would have been affected by the intro- 
duction, modification, or withdrawal of 
the deviation; 

(9) Company's current percentage share of 
the North Carolina market for the line (in 
terms of premium); 

(10) Percentage of the company's North Ca- 
rolina book of business affected by the 
deviation (in terms of both premium and 
number of poUcies); 

(11) Percentage of the company's countrywide 
book of business comprised of North Ca- 
rolina policies affected by the deviation (in 



terms of both premium and number of 
policies); 

(12) Aggregate premium change in dollars and 
percentage for North Carolina policy- 
holders affected by the deviation; 

(13) A list of states where the company has 
filed similar deviations. (Provide separate 
lists for approved and disapproved devi- 
ations); 

(14) Eligibility requirements for the deviation; 

(15) Restrictions on the application of the 
deviation; 

(16) Company NAIC IRIS test resuhs for the 
latest five years; 

(17) Certification by a company official that 
the information supplied is complete and 
accurate; 

(18) Such other information that the com- 
missioner may require. 

(g) Operating Profitability Form. The operat- 
ing profitability form shall contain the following 
information on a company's North Carolina ex- 
perience for the latest five years, for each year and 
in total: 

(1) Net premiums written; 

(2) Net premiums earned; 

(3) Net losses incurred; 

(4) Net loss adjustment expense incurred; 

(5) Net acquisition expenses; 

(6) Net general expenses; 

(7) Net taxes, licenses and fees; 

(8) Net underwriting gain or loss; 

(9) Direct earned premium at current bureau 
rates; 

( 1 0) The ratio of calendar year incurred losses 
and loss adjustment expenses to direct 
earned premium at current manual rates; 

(11) The ratio of annual loss trend to annual 
premium trend; 

(12) The trend to bring the loss ratio to cur- 
rent cost level; 

(13) Loss and loss adjustment expense ratio 
at current cost level; 

(14) The ratio of incurred operating expense 
(other than loss adjustment expense) to 
direct earned premium at current manual 
rates; 

(15) The ratio of investment income from 
North Carolina loss, loss adjustment ex- 
pense, and unearned premium reserves to 
earned premium; 

(16) Such other information as the commis- 
sioner may require. 

Statutory Authority G.S. 58-25. J; 58- J 24.23 (a), 
(c). 



NORTH CAROLINA REGISTER 



46 



PROPOSED RULES 



TITLE 14A - DEPARTMENT OF CRIME 
CONTROL AND PUBLIC SAFETY 

ly otice is hereby given in accordance with G.S. 
I SOB- 1 2 that the Department of Crime Control 
and Public Safety - Alcohol Law Enforcement 
Division intends to amend regulations cited as I4A 
NCAC8A .0001 - .0002: 8H .020 J - .0207, .030 J 

- .0303. .0401 - .0405, .0501 - .0502, .0504, .0601 

- .0606, .0701 - .0703, .0801 - .0803, .0901 - .0902, 
.1002, .1101 - .1104. .1201 - .1202, .1301 - .1302, 
.1401 - .1404, .1501 - .1502. .1504, .1601, .1603 - 
.1604, .1701 - .1705. .1801 - .1805, .1901 - .1903; 
81 .0001 - .0002; 9H .0703; and repeal regulations 
cited as 14A NCAC 8H .0503, .1602. 

1 he proposed effective date of this action is Au- 
gust 1, 1988. 

1 he public hearing will be conducted at 10:00 
a.m. on May 16, 1988 at The Library, Archdale 
Building, Raleigh, NC. 

(^ omment Procedures: Any interested person 
may present comments relevant to the action pro- 
posed at the public hearing either in written or oral 
form. Written statements not presented at the 
public hearing may be directed prior to May 16, 
1988 to the Administrative Procedures Coordina- 
tor, Second Floor, Archdale Building, 512 North 
Salisbury Street, Raleigh, North Carolina or Post 
Office Box 27687, Raleigh, North Carolina 
27611-7687. 

CHAPTER 8 - ALCOHOL LAW ENFORCEMENT 

SUBCHAPTER 8A - DEFINITIONS 

.0001 DEFINITIONS TO APPLY TO THIS 
CHAPTER 

The definitions listed in .0002 of this Subchapter 
shall apply to the words and phrases found in this 
Chapter, \iomb e rs Employees shall be governed 
by these defuiitions whenever they appear in any 
alcohol law enforcement rule, regulation, order, 
pohcy or directive, or in the Alcohol Law En- 
forcement Manual. 

Statutory Authority G.S. 18B-500; 143B-10. 

.0002 DEFINITIONS 

Defmitions for this Chapter are as follows: 
(1) ABC Commission-- N.C. Alcoholic Bev- 
erage Control Commission established pur- 
suant to Chapter 18B of the North Carolina 
General Statutes; 



(3) ABC Hooring. A» e xamination hf a 
h oaring offioor ef State ABC CommiDDion 
fef tbe purpooe ef dotormini ftg ' ■ ■ ■ 'hothor a 
pormit should be iooued, Guopondod ef re- 
voltod; 

(^ (2} ABC Store. A retail establishment set 
up by a local ABC Board to sell alcoholic 
beverages to the public; 

f4) (3} Agent. A duly authorized and sworn 
law enforcement employee of the ALE divi- 
sion; ALE agent; 

{4^ (4) Agent in Charge. An agent in charge 
of the Ale division or any organizational 
subdivision of the ALE division, or any 
ALE agent in charge of any special detail; 

(^ (5} Alcohol Law Enforcement. The Alco- 
hol Law Enforcement Division of the North 
Carolina Department of Crime Control and 
Public Safety, including all employees, both 
enforcement and civilian; ALE, ALE divi- 
sion; 

f?) (6^ Alcohol Violations Review Officer. An 
employee of the ALE division who reviews 
and approves or rejects all violations reports 
filed by ALE agents and submits approved 
violation reports to a hearing officer; 

f*^ (JX ALE. The Alcohol Law Enforcement 
Division of the North Carolina Department 
of Crime Control and Public Safety, includ- 
ing all employees, both enforcement and ci- 
vilian; ALE division, alcohol law 
enforcement; 

f9) (8) ALE Agent. A duly authorized and 
sworn law enforcement employee of the 
ALE division; agent; mombor; employee; 
(4^ (9) ALE Division. The Alcohol Law En- 
forcement Division of the North Carolina 
Department of Crime Control and Public 
Safety, including all employees, both en- 
forcement and civihan; ALE; alcohol law 
enforcement; 
(-14} (10) Alcohol Law Enforcement Order. An 
inclusive term which applies to the ALE 
manual, a directive, rule, regulation, general 
order, special order, administrative notice or 
written procedure; 
(+i) (11) Assistant supervisor. An agent who 
ranks below a supervisor and above an 
agent. He supervises agents, assists the su- 
pervisor and acts in the absence of the su- 
pervisor or when delegated specific authority 
by the supervisor; 
(-14) (12) Ch'un of Command. Oflicial route 
of communication from the supervisor low- 
est in rank through intermediate supervisors 
to the highest appropriate supervisor, in- 
cluding the director, if appropriate; channels; 



47 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



(+4^ (13) Channels. Official route of commu- 
nication from the supervisor lowest in rank 
through intermediate supervisors to the hi- 
ghest appropriate supervisor, including the 
director, if appropriate; chain of command; 

(+^ Q4i Chapter 18B. The chapter of the 
North Carolina General Statutes which sets 
forth the majority of the state's statutes reg- 
ulating the sale, possession, manufacture, 
transportation, use and consumption of al- 
coholic beverages; 

(4^ (15) Civilian Employees. Persons em- 
ployed by the ALE and who do not have 
police powers; 

(4^ (16) Complaint. An expression of dissat- 
isfaction made by a member of the public 
concerning the activities of a licensee or, 
when used in the disciplinary sense, an alle- 
gation by any person alleging improper 
conduct on the part of a mombor; an ALE 
employee; 

(4*) (17) Compulsory Leave Without Pay. 
Action taken in temporarily removing a 
m e mber an employee from duty as a result 
of his violation of ALE policy, rules, regu- 
lations or directives, not to exceed three 
days; 

(4^ (Is) County or Municipal ABC Agent or 
Officer. An employee of a local ABC Board 
who enforces state and local alcoholic bev- 
erage control laws or regulations within that 
county; 

(30) (19) Department. The Department of 
Crime Control and Public Safety; 

(34) (18) Deputy Director for Administration. 
One of two agents who shares the second in 
command position of the ALE division and 
who may act in the absence of the director, 
or when delegated specific authority by the 
director. This agent is in charge of admin- 
istrative duties as provided by ALE policy, 
rules, regulations and directives; DDA; 

(33) (21) Deputy Director for Operations. One 
of two agents who shares the second in 
command position of the ALE division and 
who may act in the absence of the director 
or when delegated specific authority by the 
director. His primary duties concern en- 
forcement activities; DDO; 

(34) (22) Detail. Momboro Agents of the ALE 
division grouped together for the accom- 
plishment of a specified official mission; 

(34) (23) Directive. A numbered, written order 
issued by the director which prescribes a 
policy governing the operation of the ALE 
division or which outlines procedures to be 
foUowed in performing a function or duty; 



(35) (24) Director. The head of the ALE divi- 
sion; ef A» Doportm e nt ef Crime Control 
aft4 Public Safety; 

(34) (25) Dismissal. An act which terminates 
the service of a member an employee with- 
out the member's employee's consent; 

(3^ (26) District. A subordinate unit of the 
state which encompasses one or more 
counties and is supervised by a district su- 
pervisor; 

(38) (27) District Supervisor. The agent in 
charge of a district; 

(39) (28) Duty Offic e r. Agent. The agent in 
charge in the absence of the supervisor or at 
any other time as designated by the director, 
deputy director, or district supervisor; 

(40) (29) Employee. Afty enforcement mombor 
ef a oi^^ilion Anyone employed by the ALE 
division; 

(44) Enforcomont Mombor. A«y omployoo ef 
the ALE division whe ie a sworn few eft- 
forcomont officer; agent, ALE agont, mom 

(43) (30) Field Office. A city, a town, or a post 
office designated as an agent's base of oper- 
ation; 

(44) (31) Gift. Something that is bestowed vo- 
luntarily and without compensation--for ex- 
ample, money, tangible or intangible 
personal property, a loan, any service ren- 
dered, entertainment, or a promise, ex- 
pressed or implied, to provide any of these; 
gratuity; 

(44) (32) Gratuity. Something that is bestowed 
voluntarily and without compensation— for 
example, money, tangible or intangible per- 
sonal property, a loan, any service rendered, 
entertaiimient, or a promise, expressed or 
implied, to provide any of these; gift; 

(4^ (33) Hearing Officer. An employee of the 
State Board of Alcoholic Control who re- 
views violation reports filed by ALE agents; 
hears statements from the affected permittee 
and/or his attorney, the ALE agent, wit- 
nesses and other affected parties; and makes 
findings of fact and recommendations to the 
ABC Board as to whether the permittee's 
permit should be suspended or revoked; 
also, one who holds hearings about whether 
a permit should be issued; 

(44) (34) Illegal Order. An order issued by a 
superior agont which is not consistent with 
applicable laws; 

(4^ (35) Insubordination. Willfully disobeying 
any lawful order issued by a superior agent, 
or any disrespectful, mutinous, insolent, or 
abusive language or conduct directed toward 
a superior agent; 



NORTH CAROLINA REGISTER 



48 



PROPOSED RULES 



(4^ (36) Length of Service. The length of time 
y*at- a mombor an employee has been en- 
gaged in the actual performance of ALE 
duty; as aft onforoomont momber; 

f^ (37) License. A written or printed certif- 
icate which allows a person to engage in 
some phase of the hquor alcoholic beverage 
industry and which may be issued by the 
Secretary of Revenue, by a municipality, or 
by a county; 

(4% (38) Local ABC Board. Any county or 
municipal board of alcoholic control estab- 
lished by state law; 

(444 (39) Medical Sen,'ices Director. The Patrol 
Medical Ser\'ices Director appointed by the 
Secretary of Crime Control and Public Saf- 
ety; 

(42) Member. A 4«l¥ authorized aft4 sworn 
law onforooment omployoo »f A# ALE divi 
oion; ALE ag e nt, agent; 

(4^ (40) Militar)' Leave. The period of time 
during which a member is granted leave 
from the ALE division when called to per- 
form active militarv' service; 

(44) (41J Otl Duty. Time dunng which a 
mombor an employee is authorized to be free 
of the responsibility of performing routine 
ALE duties; 

(4-^ (42) Order. An instruction or directive, 
either written or oral, issued by superior 
agents to subordinates in the course of ALE 
duty; 

(44) (43) Permit. A written or printed authori- 
zation to engage in some phase of the liquor 
alcoholic beverage industry which may be 
issued by the ABC Commission under the 
provisions of Chapter 18B of the N.C. 
General Statutes; 

(4^ (44) Permittee. An individual, partnership 
or corporation which has received a permit 
from the ABC Commission; 

(48) (45) Policy. A duly adopted guiding prin- 
ciple or course of action designed to influ- 
ence and determine decisions, actions, and 
procedures; 

(49) (46) Probation. A 34 J^ -month tnal pe- 
riod in which a mombor o an agent's fitness 
for membership in the ALE division is 
tested. At the end of this period, the direc- 
tor evaluates a momber'r . the performance 
and determines whether he may continue as 
a member of the ALE division; 

(^ (47) Probationar.' Mombor. Agent. Any 
mombor agent who has been employed by 
the ALE division for less than the 2 ' 1 month 
probation probationary' period; momboro 
agents are also subject to the provisions of 
Chapter 126 of the General Statutes of 



North Carolina and pursuant thereto, do not 
become "permanent state employees" until 
such time as they have been continuouoly 
employed by the state for Jw© y e ars; the pe- 
riods specified in G.S. 126(c). 

f54) (48) Procedure. The officially established 
method for dealing with a given situation or 
performing a specific activity; 

(^3) (49) Recommendation. An investigator's 
supervisor's suggested course of action 
which is forwarded to the appropriate su- 
pervisor through the chain of command with 
a completed report of investigation; 

{Si^ (50) Reprimand. A formal rebuke issued 
to a hcensee by the ABC Commission or in 
the disciplinary sense, a level of disciplinary 
action taken against a mombor; an em- 
ployee; 

(^4) (51) Resignation. Voluntary termination 
of senice by a mombor an employee of the 
ALE division; 

(4&) (52) Retailer. An individual, partnership 
or corporation which has received a permit 
from the ABC Commission to engage in 
some phase of the retail liquor alcoholic 
beverage industry; 

(^6) (53) Retirement. Termination of active 
service of a mombor an employee with the 
number of years of creditable service re- 
quired by statute to be ehgible for retirement 
benefits or termination of service due to in- 
capacitating disability; 

(^5) (54) Revocation of Permit. A cancellation 
of a permit by the ABC Commission; 

f^^ (55) Secretax)'. The Secretary of Crime 
Control and Public Safety; 

(^9) (56) Special Orders. A written order issued 
by the director relating to personnel matters; 

(40) (57) State. The sovereign State of North 
Carolina; 

(41-) (58) Supervisor. An agent assigned super- 
visory control and direction of members; 

(43) (59) Suspension. Action taken in removing 
a member from duty without pay in order 
to investigate an alleged violation of ALE 
policies, rules, regulations or directives; Sus- 
pension without pay may continue until a 
fuU and fmal resolution of the matter is 
reached; 

(43) (60) Suspension of Permit. A temporary 
revocation of a permit by the ABC Com- 
mission; 

(44) (61) Training Coordinator. .An ALE agent 
whose primary responsibility concerns re- 
search and training relating to ALE activ- 
ities; 

(4§) (62) Undercover Agent. .An ALE agent 
who operates m oocrot m order covertly to 



49 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



discover violations of any ABC laws or reg- 
ulations, violations of the Controlled Sub- 
stances Act, or any other violations of the 
criminal laws of the state; ef wh» is e» spe- 

»f tfee Governor; 

(^6) (63) Violation. The act of violating an 
ABC Commission rule or a provision of 
Chapter 18B of the N.C. General Statutes; 

(4?^ (64) Violation Report. A report of vio- 
lation written by an ALE agent; 

(4^ (65) Wholesaler. An individual, partner- 
ship or corporation which has received a 
permit from the ABC Commission to en- 
gage in some phase of the wholesale liquor 
alcoholic beverage industry. 

Statutory Authority G.S. 188-500; I43B-I0. 

SUBCHAPTER 8H - ADMINISTRATION: 
INVESTIGATION: AND ENFORCEMENT 

SECTION .0200 - PERMIT: APPLICATIONS 
AND INVESTIGATIONS 

.0201 ISSUANCE OF PERMIT APPLICATION 

A mombor An employee shall issue a» appro- 
priate ABC Permit AppUcation Applications 
upon the request of any person. A mombor 
Employees shall not refuse a roquout requests for 
aft application applications even if the mombor 
employee knows the person or establishment 
does not meet the statutory or administrative re- 
quirements. A mombor Employees shall com- 
pletely and fully explain to each applicant the 
information required by the form, the supporting 
documents required, and the type and nature of 
any fees required to be submitted with the appli- 
cation. 

Statutory Authority G.S. I8B-500; 1438- 10. 

.0202 RECEIPT OF COMPLETED 
APPLICATIONS FROM ABC 
COMMISSION 

Upon receiving an ABC Permit Application, 
the ABC Commission will date, record, and for- 
ward the application to ALE for investigation. 
The memb e r agent assigned to the investigation 
shall log the date it was received from the ABC 
Commission on the application log. UjX)n 
completion of the investigation the mombor 
agent shall log the date »» ti» application sg^ 
forward th» application, his typ e d invontigativo 
r e port, the investigation was completed in the 
application log and mail the application, typed 
investigative report, and all supporting docu- 
ments to the ABC Commission. A mombor An 



agent shall complete all investigations and for- 
ward all completed reports to the ABC Com- 
mission within three weeks of the date of receipt 
by the ABC Commission as indicated on the 
application form. In unusual circumstances, the 
mombor agent may request an extension of time 
to complete an investigation. A mombor An 
agent shall completely and thoroughly report ev- 
ery investigation to the ABC Commission on the 
appropriate ABC Commission form. 

Statutory Authority G.S. 188-500; 1438-10. 

.0203 CONDUCT OF THE PERMIT 

INVESTIGATION: APPLICANTS 

All permit applicants shall be interviewed. afi4 
a poroonal history obtained. Non-resident offi- 
cers, directors or persons owning more than 
twenty-five percent of the stock of a corporation 
need not be personally interviewed, but the re- 
quired information may be obtained by mail or 
telephone. The mombor agent shall attempt to 
determine each applicant's character and reputa- 
tion in the community and shall make a com- 
plete criminal history check. He shall obtain 
out-of-state criminal checks when applicable. 
The mombor agent shall determine from the ap- 
plicant whether or not he previously held a per- 
mit at any time and shall investigate the 
operating history of the applicant under any and 
all prior permits. 

Statutory Authority G.S. 188-500; 1438-10. 

.0204 CONDUCT OF THE PERMIT 
INVESTIGATION: PREMISES 

The mombor agent shall physically inspect the 
premises for which the applicant seeks a permit. 
He shall determine whether the applicant owns 
or leases the premises and shall sketch the phys- 
ical layout of the facility to include parking lots 
or similar areas, if they are integral parts of the 
business. The sketch shall include the approxi- 
mate dimensions of the licensed area. The fmal 
report shall include a copy of the sketch. The 
mombor agent shall physically inspect the prem- 
ises and note such characteristics as required to 
determine the suitability of the location and as 
directed by the division. The mombor agent shall 
specifically note the proximity of the premises to 
schools, churches and other outlets. He shall 
determine if the location has previously housed 
a licensed outlet and, when applicable, determine 
the operating history of that outlet. 

Statutory Authority G.S. 188-500; 1438-10. 

.0205 LOCAL OPINION FORMS 



NORTH CAROLINA REGISTER 



50 



PROPOSED RULES 



As part of the investigation, when appropriate, 
the mombor agent shall serve, personally or by 
mail, designated local officials with local opinion 
forms. He shall inform each local official, at the 
time of service, the forms should be completed 
and returned to the momb e r agent within 10 days 
or the ABC Commission will presume local 
consent to the permit. The momber He shall 
make every reasonable effort to obtain the 
completed original form from the local official 
and return it with his investigative report. 

Statutory Authority G.S. I8B-500; 1 43 B- 10. 

.0206 SLBMISSION OF INVESTIGATIVE 
REPORT: INVESTIGATIONS 

The mombor agent shall complete the investi- 
gative report and exhibits on such forms and in 
such a manner as directed by the director. Th© 
mombor He shall review the completed, typed 
report, as well as any and all attachments and 
exhibits. Upon determining that the report is 
correct and thorough, he shall sign and date the 
report and forward the complete package to the 
ABC Commission. Bw mombor He shall con- 
duct additional investigations or complete a sup- 
plemental report when requested by the ABC 
Commission. 

Statutory Authority G.S. JSB-500; I43B-10. 

.0207 NOTIFICATION OF REJECTION: 
REVIEW OF IN\ ESTIGATION 

Upon rejection of a permit application, the 
ABC Commission wiU mail to the mombor agent 
a copy of the otTicial notice of rejection. The 
mombor agent shall, upon receipt of the notice, 
review the application investigation to determine 
if the reasons for rejection as stated in the notice 
are consistent with the fmdings contained in the 
momber's investigative report. Should tit© 
mombor he detect any discrepancies, he shall im- 
mediately contact his supervisor and inform him 
of the inconsistencies. The super\'isor shall im- 
mediately inform the ABC Commission of the 
mombor'o agent's fmdings. 

Statutory Authority G.S. J8B-500; 143B-10. 

SECTION .0300 - OUTLET OBSERVATIONS 
AND INSPECTIONS 

.0301 PURPOSE 

A mombor An agent shall use the observation 
and inspection of licensed premises to acquaint 
himself with the permittee and his operations, to 
improve the permittee s knowledge of the ABC 
law and ABC Commission rules and to promote 
and ensure compliance with those laws and rules. 



A mombor An agent shall, through inspections, 
familiarize himself with every permittee, his em- 
ployees, and with the outlet's operating practices. 

Statutory Authority G.S. 1 88-500; 143B-I0. 

.0302 FREQUENCY 

A mombor An agent shall physically visit each 
outlet in his assigned area at least once every 12 
months. A mombor He shall inspect and observe 
more frequently outlets which generate com- 
plaints or which have histories of repeated law 
or rule violations occuring on or about the 
premises. He shall make a repeat inspection of 
outlets in which earlier inspections revealed pos- 
sible unlawful conduct or violations of ABC 
Commission rules. 

Statutory Authority G.S. /8B-500; I43B-10. 

.0303 TYPES OF INSPECTIONS AND 
OBSERVATIONS 

(a) Routine Outlet Checks. A routine outlet 
check is an informal visit with the permittee and 
his employees and an observation of the premises 
and its operations. A mombor An agent shall 
perform a routine outlet check on every outlet in 
his assigned area at least once every 12 months. 
A momber He shall visit outlets with violation 
histories on a more frequent basis. TTie routine 
outlet check shall familiarize the mombor agent 
with the permittee, his employees, and his oper- 
ating practices. A mombor An agent shall use 
this opportunity to familiarize the permittee and 
his employees with Chapter 18B and ABC 
Commission rules. A mornbor He shall observe 
the premises' operations and its patrons and shall 
take appropriate enforcement action when ob- 
serving law or rule violations. A momber He 
shaU conduct routine outlet checks in accordance 
with ALE directives. 

(b) Written Inspections. A written inspection 
is a formal, documented examination of a 
permittee's books, records, receipts and invoices, 
as well as a documented physical inspection of 
the premises and its operations. A momb e r An 
agent shall complete the appropriate written in- 
spection report, obtain the owner or operator's 
signature on the completed form, and leave a 
copy with him. The original and additional co- 
pies shall be processed in accordance with ALE 
directives. A momber An agent shall conduct a 
written inspection of each outlet in hie their as- 
signed area at least once ever>' 12 months. A 
mombor He may conduct additional written in- 
spections when he has reason to believe that dis- 
crepancies in the permittee's books, records, 
invoices, receipts, advertising, premises or oper- 



51 



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PROPOSED RULES 



ations may exist, or upon order of the district 
supervisor. A mombor He shall take appropriate 
enforcement action upon discovering law or 
ABC Commission rule violations. 

(c) Outlet Surveillance. An outlet surveillance 
is an observation of a licensed outlet without the 
knowledge of the permittee or his employees. A 
mombor An agent shall perform outlet surveil- 
lance when he has reason to believe violations 
of law or ABC Commission rules are occurring 
and these violations would not be detected in a 
routine outlet check or in the course of a written 
inspection. A mombor An agent shall carry out 
surveillance as required in the performance of his 
duties and consistent with ALE directives. A 
mombor He shall make and file a written report 
of every outlet surveillance conducted (AL-39 if 
no violations or unusual discrepancies noted). 
A mombor He shall take appropriate enforcement 
action upon observing violations of Chapter 1 8B 
or ABC Board rules consistent with the purpose 
and intent of the surveillance. 

(d) Covert Inspection. A covert inspection is 
an observation carried out on or about the li- 
censed premises during which the identity and 
position of the mombor agent is not disclosed or 
known to the permittee, his employees, and pa- 
trons. A mombor An agent shall conduct a cov- 
ert inspection when he has reasons to beUeve a 
permittee, his employees, or patrons are engaged 
in violations of the criminal laws or ABC Com- 
mission rules and tb^ member he cannot detect 
such violations or gather sufticient evidence 
thereof in any other manner. A mombor An 
agent shall take appropriate enforcement action 
upon observing violations of the criminal law or 
ABC Commission rules consistent with ALE 
rules and directives and consistent with the pur- 
pose and intent of the inspection. Any covert 
inspection requiring an agent to travel outside his 
district of assignment shall be handled adminis- 
tratively as an undercover operation in accord- 
ance with ALE directives and policies. 

(e) Overt Inspections. An overt inspection is 
an outlet inspection conducted during the 
permittee's business hours in which the mombor 
agent identifies himself to the permittee, his em- 
ployees, and patrons and informs them he is 
conducting an inspection. A m e mber An agent 
shall conduct overt inspections when he has 
knowledge of repeated violations of criminal laws 
or ABC Commission rules involving permittee- 
patron or patron-patron activity at a particular 
location or when, due to repeated, documented 
incidents at the location, the m e mb e r agent has 
reason to bebeve such activity is occurring. A 
m e mber An agent shall conduct overt inspections 
consistent with ALE rules and directives. Upon 



observing violations of the criminal law or ABC 
Commission rules, a member shall take immedi- 
ate enforcement action consistent with ALE rules 
and directives. 

Statutory Authority G.S. J8B-500; 143B-10. 

SECTION .0400 - ENFORCEMENT ACTIONS 

.0401 POLICY 

Upon learning facts sufficient to establish prob- 
able cause to believe a violation of Chapter 18B 
or ABC Commission rules has occurred or is 
occurring, a mombor an agent shall take imme- 
diate enforcement action as described in this 
Section. A mombor An agent need not take im- 
mediate enforcement action when to do so would 
jeopardize the safety of individuals or jeopardize 
the course of an investigation. A mombor An 
agent shall take no enforcement action which he 
knows or has reason to believe is unlawful or 
unauthorized. 

Statutory Authority G.S. 188-500; 143B-10. 

.0402 ORAL WARNING 

(a) Definition. An oral warning is a verbal 
communication to a permittee, pointing out to 
him a possible violation of Chapter 18B or a vi- 
olation of ABC Commission rules (4 NCAC 2). 

(b) Contents. The oral warning shall be di- 
rected to the permittee and shall: 

(1) indicate the date, time, and location of the 
agent's observation; 

(2) contain a brief statement of the facts set- 
ting forth the nature of the incident; 

(3) indicate which statute or rule may have 
been fringed; 

(4) state any action which the permittee 
should take to correct the alleged vio- 
lation; and 

(5) indicate that repeated conduct of this na- 
ture could result in more severe action. 

(c) When Issued. A mombor An agent shall 
issue an oral warning upon observation of an ir- 
regularity or an unintentional or technical minor 
violation of Chapter 18B or ABC Commission 
niles. 

(d) Method of Issuance. Upon learning suffi- 
cient facts to establish a reasonable belief a vio- 
lation occurred, a mombor an agent shall politely, 
but firmly, inform the permittee as provided in 
(b) of this Regulation and make a notation in his 
outlet file (AL-39) of the information set forth in 
(b) of this Regulation together with the fact that 
he issued the oral warning. 

Statutory Authority G.S. ISB-SOO; I43B-10. 



NORTH CAROLINA REGISTER 



52 



PROPOSED RULES 



.0403 WRITTEN WARNING 

(a) Definition. A written warning is a written 
communication to a permittee advising him he 
is allowing or engaging in a possible violation of 
Chapter i8B or of ABC Commission rules (4 
NCAC 2). 

(b) Contents. The written warning shall be 
directed to the permittee and shall; 

(1) indicate the date, time, and location of the 
agent's observation; 

(2) contain a brief statement of the facts set- 
ting forth the nature of the incident; 

(3) indicate which statute or rule may have 
been fringed; 

(4) state any action which the permittee 
ijhould might take to 6«f» correct the ai- 
logod siolation: aft4 problem. 

f^ indicate that- further violations »f tfe Ha- 
tef© could rooult vet moro sd^oro action. 

(c) When Issued. A mombor An agent shall 
issue a written warning upon observing a condi- 
tion or situation which prompted an earlier oral 
warning or when a mombor an agent observes an 
intentional but technical violation of Chapter 
18B or ABC Commission rules concerning 
which the permittee had not been earlier v/amed. 

(d) Method of Issuance. Upon learning facts 
sufficient to establish a reasonable behef a vio- 
lation has occurred, a mombor an at:ent shall in- 
form the permittee that he has detected a 
violation or has information from specified wit- 
nesses a violation occurred and he may then im- 
mediately serve a written warning upon the 
permittee. If the written warning is not served 
at that time, the permittee should be advised a 
written warning will be issued. As quickly as 
possible thereafter, but no later than seven 
working days following the above discussion with 
the permittee, the member agent shall complete 
a written warning in triplicate and serve upon the 
permittee. In any case, the permittee shall ac- 
knowledge receipt of the warning by signing the 
original and copies. The permittee shall retain 
one copy, the ABC Commission shaO receive the 
original and the member agent shall retain one 
copy for his files. 

(e) A mombor An agent must be prepared to 
testify to all matters set forth in the written 
warning. 

Statutory Authority G.S. JSB-500: I43B-I0. 

.0404 MOLATION REPORT 

(a) Definition. A violation report is a written 
report by a mombor an agent made to the ABC 
Commission alleging a specific violation of 



Chapter 188 or ABC Commission rules which 
occurred in a licensed outlet at a specific date and 
time. 

(b) Contents. The violation report shall indi- 
cate: 

(1) the name and address of the permittee, any 
trade name used; 

(2) the type of permits held; 

(3) the specific violation charged and the date 
and time each occurred; 

(4) the name of the person in charge of the 
premises at the time of the violation; 

(5) the name and address of any witnesses for 
whom subpoenas should be issued; 

(6) a notation as to whether previous com 
plainto warnings and/or violations have 
been roooived filed against the particular 
permittee; 

(7) a narrative report of the facts surrounding 
the alleged violations; and 

(8) the mombor'o agent's signature and date 
of the report. 

(c) When Issued. A mombor An agent shall 
complete and submit a violation report to his 
supervisor when he observes or has probable 
cause to believe a permittee has committed a de- 
finite, clear-cut and substantial violation of 
Chapter 18B or ABC Commission rules, or when 
a member an agent observes an uncorrected vio- 
lation by a permittee for which a written warning 
had been previously issued. 

(d) Method of Issuance. A mombor An agent 
shall inform the permittee or person in apparent 
control of the premises that he has probable 
cauoQ reason to believe the permittee or his em- 
ployee has committed a definite, clear-cut and 
substantial violation of Chapter 18B or ABC 
Commission rules and that the mombor agent 
will submit a violation report. The member 
agent shall inform the permittee or person in 
control of the nature and circumstances sur- 
rounding the violation and the apphcable statute 
or rule violated. A member ohall submit th» vi- 
olation report te- his sup e r i ioor within mvon 
worlcing days following hie dotormination that- a 
violation has occurr e d. He shall submit the vio- 
lation report in sufficient time to reach head- 
quarters within 12 working days of the date the 
violation occurred. (Working days are Monday 
- Fridav and the violation date does not count in 
counting 12 days.) Violation reports shall be 
processed as provided in Section .0500 of this 
Subchapter. 

Statutory Authority G.S. I8B-500; I43B-/0. 

.0405 CIT.XTFON AND ARREST 



53 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



(a) Definition. A citation is a directive issued 
by a law enforcement officer that a person appear 
in court and answer criminal charges. 

(b) Contents. The citation must: 

(1) identify the crime charged, including the 
date, and, when relevant, identify the 
property and other persons involved; 

(2) contain the name and address of the per- 
son cited or other identification if that 
cannot be ascertained; 

(3) identify the officer issuing the citation; 

(4) cite the person to whom issued to appear 
in a designated court at a designated time 
and date; and 

(5) the date and the signature of the mombor, 
agent as well as the signature of the person 
cited. 

(c) When Issued. A m e mb e r An agent shall 
issue a citation or make an arrest for definite, 
clear-cut and substantial violations of Chapter 
18B. When momboro agents cite a permittee, 
they shall also submit a violation report as pro- 
vided in Regulation .0404 in this Section. 

(d) Method of Issuance. A mombor Agents 
shall issue citations or make arrests as herein 
provided and consistent with Chapter 1 5A of the 
General Statutes and ALE directives. 



Statutory Authority G.S. ISB-500; 
1 5 A- 302. 



1438- 10; 



SECTION .0500 - VIOLATION REPORT 
PROCESSING 

.0501 REVIEW BY DISTRICT SUPERVISOR 

(a) A mombor An agent shall submit completed 
violation reports to the district supervisor. The 
district supervisor shall review the report and de- 
termine that it is free from toohniool errors and 
that the momboro agent's investigation is thor- 
ough and complete. The supervisor shall note 
any tochnical errors in the report or indicate areas 
requiring further investigation or elaboration and 
return the report to the mombor. agent. A 
mombor The agent shall make immediate cor- 
rections, modifications, or additional investi- 
gations and resubmit the report to the supervisor. 

(b) Upon receiving a technically complete, 
correct, and thorough violation report, the su- 
pervisor shall review the entire fde. If he deter- 
mines that the report established probablo cause 
to beUeve that a definite, clear-cut and substantial 
violation occurred and is set forth, he shall so 
indicate by dating and signing the report and 
shall immediately forward it to the director. If 
the supervisor determines that the report does 
not establish probabl e cause to believe a definite, 
clear-cut and substantial violation has occurred. 



he shall return the report to the mombor agent 
and direct him to take lesser or no enforcement 
action, as the case may be. 

Statutory Authority G.S. I8B-500; I43B-10. 

.0502 REVIEW BY DIRECTOR: FORWARD 
TO REVIEW OFFICER 

(a) The director shall review violation reports 
submitted by the district supervisor and deter- 
mine that the report is free from tochnical errors 
and that the momboro agent's investigation is 
thorough and complete. The director shall note 
any tochnical errors in the report or indicate areas 
requiring further investigation or elaboration and 
return it, with his comments, to the district su- 
pervisor. The district supervisor shall imme- 
diately order the investigating m e mber agent or 
other momboro agents to make any corrections, 
modifications, or additional investigations and 
resubmit the report to the director. 

(b) Upon receiving a toohnically complete, 
correct, and thorough violation report, the direc- 
tor shall review the report. If the director deter- 
mines a report does not establish probablo cause 
to believe that a definite, clear-cut and substantial 
violation has occurred, he shall return the report 
to the district supervisor and direct him to order 
lesser or no enforcement action, as the case may 
be. If the director determines the report estab- 
lishes probablo cause to believe a definite, clear- 
cut and substantial violation has occurred and 
the report contains sufficient information to jus- 
tify ABC Commission action, he shall so indicate 
by dating and initialing the report and shall im- 
mediately forward it to the alcohol violations re- 
view oflic e r. ABC Commission. 

Statutory Authority G.S. I8B-500; 143B-I0. 

.0503 REVIEW BY THE ALCOHOL 

VIOLATIONS REVIEW OFFICER 
(REPEALED) 

Statutory Authority G.S. lSB-500; 143B-10. 

.0504 NOTICE CONCERNING HEARING: 
REVIEW OF INVESTIGATION 

Upon receipt of an official notice of hearing or 
summary suspension or revocation order from 
the ABC Commission arising from a violation 
report, » momber an agent shall review his in- 
vestigative report to determine the action is con- 
sistent with the findings and facts contained in 
the mombor's agent's investigative report. 
Should the mombor agent detect any discrepan- 
cies, he shall immediately contact his supervisor 
and inform him of the inconsistencies. The su- 



NORTH CAROLINA REGISTER 



54 



PROPOSED RULES 



pervisor shall immediately inform the ABC 
Commission of the member's agent's findings. 

Statutory Authority G.S. J8B-500; J43B-J0. 

SECTION .0600 - OAH HEARINGS AND 
APPEALS 

.0601 SCI lEDl LING HEARINGS 

a r i chodulo sf saoation days, training o e soiono, &f 
other tfoye »» ' . vhich he is unavailable f©f ABC 
Commir . aion hLmringo d«« t^ required activitioo. 
A member ohall promptly notily his Dupop i 'ioor 
e^ aft¥ ohangeo m hts ochodule. Suporviooro shall 
fonvard thes e rchedules te the director whe shall 
furnish the information te- the ABC Commio 
sion. ¥he oommiusion may contact a member 
directly if there is any- quootion »f conflict i» » 
member's schedule. 

(^ The ABC Commission will notify a member 
an agent of hearing dates, times and locations. 
A member An agent shall direct any questions 
or problems concerning hearing schedules to the 
commission through his supervisor. 

Statutory' Authority G.S. J8B-500; 143B-10. 

.0602 OFFICIAL NOTICE OF HEARING 

The ABC Commission will forward an official 
notice of hearing to the member agent. Upon 
receipt of the official notice of hearing, a member 
the agent shall review his files to be certain the 
notice is correct. aft4 subpoenas have been ef 
VrtH be issued fof att necessary witnesses. A 
member He shall report any discrepancies to his 
supervisor who shall immediately notify the ABC 
Commission, appropriate ABC legal specialist. 

Statutory Authority G.S. ISB-500; 143B-I0. 

.0603 SERVICE OF SLBPOEN.AS 

A member shall promptly sen i le the official ho- 
t+ee ef hearing &» the person named. Both the 
member sift^ the person se sorted shall, at- the 
tim e »f sop i 'ice, «^ aftd date the original aR4 ali 
copies. A member shall l e ave the original with 
the p e rson named, retain ese copy fof his files 
aft4 fonvard the remaining copy te his district 
offiioo fof forwarding t» the AftG Commission. 
A member shall promptly sop i e aey subpoenas 
m connection witfe the hearing. 

OAH subpoenas will be mailed to permittees 
and other witnesses, by certified mail, return re- 
ceipt requested. If the subpoena is returned un- 
delivered. OAH will request an agent to serve the 
subpoena personally. 

In these cases the subpoena should be ser\'ed 
promptly. Both the agent and the person so 



served shall at the time of service sign and date 
the original and all copies. The original shall be 
left with the person subpoenaed. One copy shall 
be retained for ALE files and the remaining co- 
pies shall be forwarded to the ALE District Office 
for forwarding to the ABC Commission. 

Statutory Authority G.S. 18B-500; 143B-I0. 

.0604 APPEARANCE AT HEARINGS AND 
APPEALS 

Prior to hearing, a member an agent shall care- 
fully review his investigative file, exhibits, and 
reports. A member An agent shall appear at the 
designated hearing time and location fuUy pre- 
pared to testify concerning any portion or all of 
his investigation. A member He shall testify fully 
and completely. If for any reason a member he 
is delayed or prevented from attending a hearing, 
he shall promptly notify the hearing officer aft4 
his sup> e msor. his supervisor and the appropri- 
ate ABC legal specialist. 

Statutory Authority G.S. /8B-500; 143B-10. 

.0605 NOTIFICATION OF FULL 
COMMISSION ACTION 

Subsequent to the hearing, a member an agent 
win be notified of the date the ABC Commission 
will consider the hearing officer's recommen- 
dations in the particular matter. A member An 
agent shall so notify local officials who expressed 
interest in the particular matter of the scheduled 
date, time, and location of the ABC Commission 
meeting. 

Statutory Authority G.S. ISB-SOO; 143B-10. 

.0606 ADDITIONAL TESTIMONY: 
APPEALS 

A memb e r An agent shall retain all his investi- 
gative fdes pending a formal resolution of the 
matter through and including the Appellate Di- 
vision of the General Court of Justice. A m e m 
bef He shall honor all requests by the ABC 
Commission for testimony before the h e aring 
offic e r, Office of Administrative Hearings, the 
ABC Commission or in superior court when 
made by the ABC Commission through the dis- 
trict supervisor. Requests from the ABC Com- 
mission directly to the member agent shall be 
discussed with the district supervisor. A member 
He shall not appear and give testimony at an 
appUcant's or permittee's request except upon a 
duly served subpoena. When served with such 
subpoena, a member an agent shall immediately 
notify- his district super\isor who shall notify the 
ABC Commission. 



-■>:> 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



Statutory Authority G.S. I8B-500; I43B-I0. 
SECTION .0700 - ADMINISTRATIVE DUTIES 

.0701 DELIVERING PERMITS 

(a) A mombor ohall promptly d e liv e r eSA nowly 
issued p e rmits te- pormittoos within 4^ hours e^ 
receipt from the ABC Commission. Exceptions 
te thi« roquiromoa t are allowed '4 the ap plicant 
is operating with a temporary p e rmit which »»- 
thorizoo the activity which the Hew permit a«- 

Het caus e a diocontinuanco ef disruption oi htt- 
sin e sB. Good judgement should he ex e rcis e d m 
cormoction with the delivery »f pormito. If 
manpower limitations, fiscal restraints ef the 

^^^^^^CT c^r ^^m^^r ir\^7T-TJUui t lu iu t ivut ti v^ i\ j ui lui ivji \j\3 

with the delivery ef pormito, the permitte e 
should he immediately contacted and other fea- 
sonabl e m e thods ef delivering the permit work e d 
e«t between the permittee afi4 the member. 
Upon d e liv e r)' ©f return »f a permit, a m e mber 
shall obtain the pormittoo ^ signature e» the pef- 
ffiit receipt form. A member shall forward efte 

te- the appropriate local authoriti e s, aft4 retain 
efte fof 1«« files. At the ti«ie ef deUvery, a 
mombor ohall clearly explain ABC Commiooion 
ruloo te- the pormittoo. A mombor ohall return 
Guspended p e rmits te the p e rmitt ee e» the 
morning following the last day ef suspension. 
Newly issued permits will be mailed by the ABC 
Commission directly to the permittee at the 
mailing address provided by the permittee. 
During the application investigation process, the 
investigating agent shall advise the permit appli- 
cant the permit will be mailed to the mailing ad- 
dress which he provides. The permit applicant 
shall be advised if the mailing address is incorrect 
the receipt of the permit will be delayed. Permits 
returned to the ABC Commission for improper 
mailing address will be forwarded to the appro- 
priate district for hand delivery. These permits 
shall be delivered by ALE to the permittee no 
later than the end of business of the following 
business day. Any hand delivery of permits will 
require the completion of the appropriate permit 
receipt form. 

(b) Upon delivery or return of a suspended 
permit, an agent shall obtain the permittee's sig- 
nature on the permit receipt form. An agent 
shall forward one copy of the receipt to the ABC 
Commission, one to the appropriate local au- 
thorities, and retain one for his files. At the time 
of delivery, an agent shall clearly explain ABC 
Conunission rules to the permittee or appropri- 
ate employee. An agent shall return suspended 



permits to the permittee on the morning follow- 
ing the last day of suspension. 

(h) {c} In the case of the return of a suspended 
permit, a mombor an agent shall examine all al- 
coholic beverages in an effort to determine 
whether or not any sales have occurred during 
the period of suspension. Appropriate enforce- 
ment action should be taken if evidence is devel- 
oped indicating sales were made during the 
course of the suspension. 

Statutory Authority G.S. J8B-500; 143B-I0. 

SECTION .0800 - COMMUNICATIONS WITH 
ABC STAFF 

.0801 COMMUNICATIONS WITH ABC 

Routine or nonexf>edite communications be- 
tween a member an agent and the ABC Com- 
mission staff shall be charmeled through district 
supervisors. ABC Commission staff may contact 
a mombor agents directly to clarify minor, routine 
questions. 

Statutory Authority G.S. 18B-500; I43B-I0. 

.0803 ADVICE 

A member An agent who needs or wants advice 
on the legal ramifications of a particular situation 
shall first discuss his or her question with the 
supervisor. If the supervisor needs additional 
information, he may contact a deputy director, 
the director, or the ABC Commission staff, if 
dosirablo. 

Statutory Authority G.S. J8B-500; 143B-10. 
SECTION .1000 - DRUG ACTIVITIES 

.1002 ASSISTING OTHER AGENCIES 

Members Agents will assist other state and local 
agencies with drug-related offenses upon request. 

Statutory Authority G.S. J8B-500; I43B-I0. 

SECTION .1 100 - OTHER ENFORCEMENT 
ACTIONS 

.1101 ARREST POLICY 

(a) A mombor An agent shall issue citations or 
make arrests only for definite, clear-cut and sub- 
stantial violations. A member Agents shall not 
issue citations nor make arrests for frivolous, 
technical, or borderline violations. Factors such 
as race, sex, economic status, or familial, political 
or fraternal affiliation shall not influence a mom 
hef an agent in any manner whatsoever. 

(b) The member agent shall issue the pink copy 
of the North Carolina Uniform Citation for all 



NORTH CAROLINA REGISTER 



56 



PROPOSED RULES 



definite, clear-cut and substantial violations. If 
the memb e r agent has reason to believe that the 
offender is not likely to submit to the jurisdiction 
of the court as cited or if the offense is one which 
requires arrest, he shall arrest the offender and 
shall, without unreasonable delay, take him be- 
fore a judicial official of the General Court of 
Justice as defmed in N.C. General Statutes 
Chapter 15A and as provided in Regulation .1 103 
of this Section. 

(c) Upon arrest, the mombor agent shall, with- 
out unnecessary delay, advise the offender of his 
right to communicate with counsel, family and 
friends and must allow him reasonable time and 
opportunity to do so. 

(d) A mombor An agent shall inform every ac- 
cused person of the specific law which he is 
charged to have violated. If facts are subse- 
quently discovered which require additional 
charges to be fded, the offender shall be informed 
of the additional charges prior to trial time. 

Statutory Authority G.S. J8B-500; I43B-I0; 
I5A-50I. 

.1102 CITATIONS 

A mombor An agent shall appear before a judi- 
cial official of the General Court of Justice as 
soon as practicable foUowing the preparation of 
the North Carolina Uniform Citation to have it 
validated. No more than two charges shall be 
placed on one North Carolina Uniform Citation, 
only one of which shall be preprinted violation. 
When three or more charges are brought against 
a person, additional North Carolina Uniform 
Citations shall be prepared. 

Statutory Authority G.S. I8B-500: 143B-I0. 

.1103 BAIL BOND 

(a) When a person is arrested for an offense, the 
person shall be taken without undue delay to a 
judicial official of the General Court of Justice 
where a warrant shall be prepared according to 
law and served on the individual. Bond, if any, 
shall be set by the judicial official No money, 
security, bail bond, bail bond card or other arti- 
cles of value shall be accepted by members. 
agents. 

(b) When a mombor an agent cites an offender 
to appear in court, he should cooperate with the 
offender in giving appropriate directions to the 
appropriate court seat and should in no case ac- 
cept any money, bail bond, bail bond card, se- 
curities or other articles of value from the 
offender. 



Statutory Authority G.S. 15A-541; 
1438-10. 



.1104 



I8B-500; 



OPERATOR'S LICENSE TO REMAIN 
IN DRIVER'S POSSESSION 

When an arrested person is allowed to drive his 
vehicle to a judicial official's office, he should 
have in his possession both his operator's license 
and the registration card for the vehicle he is op- 
erating. At no time shall the member agent es- 
corting an arrested person keep these items in his 
possession while allowing an arrested person to 
drive his vehicle to the judicial official's office. 
However, if the operator's license is fraudulent 
or illegally altered, it should be retained by the 
agent as evidence of an additional crime. 

Statutory Authority G.S. 18B-500; I43B-I0. 

SECTION .1200 - CIVIL DISTURBANCES 

.1201 REQUEST FOR ASSISTANCE 

(a) In the event state assistance is deemed nec- 
essary by local officials to assist with riots, mob 
violence or other civil disturbances, local gov- 
ernment officials should contact the director, de- 
puty directors, district supervisors, or any 
available mombor. agent. Local officials should 
state the nature of the emergency and the need 
for state assistance. The mombor agent shall 
immediately notify the director. 

(b) If time will permit, a mombor an agent 
should be immediately assigned to the scene to 
assess the situation and to inform the director or 
his designee as to the existing situation and as to 
assistance needed. 

(c) The mombor agent assigned to assess the 
situation shall ascertain the following: 

(1) whether local authorities have utilized all 
of their own forces and are unable to 
control the situation, or 

(2) whether control of the situation is beyond 
the capabilities of the local authorities, or 

(3) whether local authorities are taking ap- 
propriate action. 

Statutory Authority G.S. I8B-500; I43B-10. 

.1202 COMMITMENT OF FORCES 

(a) Only the director or his designated repre- 
sentative shall authorize the actual commitment 
of ALE forces to assist local officials with civil 
disturbances after obtaining permission of the 
secretary, his representative or the Governor. 
Provided, however, that pending instructions 
from ALE headquarters, the ranking agent on the 
scene shall have the authority to temporarily 
commit such forces as are necessary to control 
an emergency situation where it reasonably ap- 



57 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



pears that the lives of citizens are endangered or 
the destruction of public or private property is 
threatened. 

(b) ALE forces will work under the control of 
the district supervisor for the affected area, and 
memb e rs agents will assist in coordinating activ- 
ities of all ALE and local official agencies in- 
\olved. Any unlawful or unauthorized act on the 
part of any mombor agent will not be excusable 
on the grounds that it was the result of an order 
or request received from a local officer or civilian 
official. 

Statutory Authority G.S. I8B-500; I43B-10. 
SECTION .1300 - WRECKER SERVICE 

.1301 IIVIPARTIAL USE OF SERVICES 

Members Agents shall be absolutely impartial 
in using private wrecker services. Momboro 
Agents shall, whenever possible and practicable, 
dispatch the wrecker service requested by the 
motorist requiring such services. 

Statutory Authority G.S. J8B-500; 1438-10. 

.1302 ROTATION OF WRECKER REQUESTS 

(a) When a motorist does not request a partic- 
ular wrecker service, momberc an agent shall in- 
form the local State Highway Patrol 
telecommunicator as to the person making the 
request and shall inform the telecommunicator 
the person has no preference as to wrecker ser- 
vice. Patrol telecommunicators maintain a 
wrecker service log on which private business 
concerns providing dependable, 24-hour wrecker 
service may be listed at their request, provided 
they conform with the laws governing the opera- 
tion of wreckers. Telecommunicators shall be 
responsible for assuring that each service is called 
on a regular and equal rotating basis, unless spe- 
cial circumstances require a deviation from the 
rotation policy, as described in Subdivisions (b) 
and (c) of this Regulation. 

(b) M e mbers An agent shall not be required to 
call wreckers requested by motorists or required 
by the rotation log, but shall instead call the 
nearest available wrecker service, when an emer- 
gency exists (for example, when traffic congestion 
is a major problem, when persons are piimed in 
the wreckage, when danger of fu"e or explosion is 
present, or when other emergency situations ex- 
ist). 

(c) Members An agent shall not be required to 
call wreckers requested by motorists or required 
by the rotation log when special storage facilities 
are required for seized or impounded vehicles. 



Statutory Authority G.S. 1 88-500; 1438-10. 
SECTION .1400 - ALE ESCORTS AND RELAYS 

.1401 ESCORTING EMERGENCY VEHICLES 

Nlembero Agents shall not escort ambulances 
or other emergency vehicles unless special cir- 
cumstances require. Exceptions may be made 
when a driver of an emergency vehicle cannot 
reach a hospital or other destination without as- 
sistance. 

Statutory Authority G.S. 188-500; 1438-10. 

.1402 ESCORTING PRIVATE VEHICLES 

Members Agents shall not escort private vehi- 
cles making emergency runs unless special cir- 
cumstances require. 

Statutory Authority G.S. 188-500; 1438-10. 

.1403 ESCORTING FUNERAL PROCESSIONS 

Members Agents shall not escort funeral proc- 
essions without authorization from a supervisor. 

Statutory Authority G.S. 188-500; 1438-10. 

.1404 EMERGENCY MEDICAL RELAYS 

Emergency medical relays may be made by 
m e mbers an agent whenever an actual emergency 
situation exists. The procedures listed in Sub- 
sections (1) and (2) of this Rule shall be followed: 

(1) Emergency relays will be authorized only 
when there is imminent danger of death or 
additional injury to the person being treated 
and at the request of the State Highway Pa- 
trol. 

(2) An emergency relay may be authorized only 
when there is no alternate means of trans- 
portation available which could as effectively 
perform the service. 

Statutory Authority G.S. 188-500; 1438-10. 

SECTION .1500 - USE OF ALE CARS AND 
AIRCRAFT 

.1501 WHO MAY DRIVE 

Only the persons listed in Subsections (1) 
through (5) of this Rule are authorized to drive 
ALE cars: 

(1) e nforc e ment momboro agents while on duty; 

(2) any other sworn law enforcement officer 
while assisting a m e mb e r an agent on duty; 

(3) a mechanic while road testing a vehicle or 
while delivering a vehicle to & m e mb e r an 
agent or to a garage; 



NORTH CAROLINA REGISTER 



58 



PROPOSED RULES 



(4) a civilian while transporting » mombor an 
agent who is incapacitated by illness or in- 
jury to a hospital; 

(5) non-law enforcement ALE employees when 
authorized by a district supervisor, a deputy 
director, or the director. 

Statutory Authority G.S. 1 8 B- 500; MSB- 10. 

.1502 LNALTHORIZED PASSENGERS 

MemborG Employees shall not transport unau- 
thorized persons in ALE vehicles. Authorized 
persons may be transported when circumstances 
require. For purposes of this Regulation, au- 
thorized persons shall include accident victims, 
stranded motorists, witnesses, officers of the 
court, prisoners or other persons when required 
in line of duty. When momboro agents are alone 
and must transport authorized females, the 
mombor agent shall follow the same procedure 
as directed in transporting female prisoners, 
8H-.1704. Other persons may be authorized by 
a district super%'isor, a deputy director, or the di- 
rector. Persons authorized by a district supervi- 
sor or higher authority shall be required to sign 
Release Form AL-32, which should be forwarded 
to ALE headquarters. 

Statutory Authority G.S. ISB-500; I43B-I0. 

.1504 USE OF AIRCRAFT 

Mombors Agents shall not use private or state- 
owned aircraft in performing ALE official func- 
tions, whether on or off duty, without first 
obtaining approval of the director or his dooig 
nated roprosontativo. a deputy director in his 
absence. 

Statutory Authority G.S. 18B-500; I43B-10. 

SECTION .1600 - USE OF PHYSICAL FORCE: 
FIREARMS 

.1601 USE OF FORCE 

Momboro Agents shall use physical force in ar- 
rest and custody situations in strict conformance 
with the L'nited States Constitution and the 
Constitution and laws of North Carolina 
[Gonorol Statuto 15A ' 101(d)(l)l. as stated in 
G.S. 15A-401. 

Statutory Authority G.S. /8B-500; I43B-I0. 

.1602 LIMITATIONS ON THE USE OF DEADLY 
PHYSICAL FORCE (REPEALED) 

Statutory Authority G.S. I8B-500; I43B-I0. 

.1603 FIREARMS PROCEDURES 



Members Agents shall be governed by the fol- 
lowing in the use of firearms; 

(1) M e mboro Agents shall use only ALE-issued 
ammunition in ALE-issued firearms while 
performing enforcement duties. 

(2) M e mbers Agents shall never fire warning 
shots. 

(^ Mombors shall »e^ shoot a^ a flooing mk- 
domoonont. 

III 1 ' X VJ 1 1 S K/\Jl \J \X1 \J U U 1. 1 IV X ITAm WJ \X\nJ CTdT^HHT rTTTTJT? 

wh e n nooosoar^' \» provont ^^ eooapo ef » 
flooing folon, whon Ae person flooing is pe- 
sitivoly identified as » dang e rous f e lon; Ae 

flooing, aft4 tbe mombor must be afele tefoe 
without danger te^ other persons. 
f^ Mombors may ftfe at dangorouti fleeing fel- 
»«s eftiy whon se other moans »f capture 
eF arrost a^e reasonably avoilablo . 

te provont a f e lony dangerous t» human lifer 

^^^^^^^ ^^^-^n «^^^^ l^A 1,1£^^^ .-v*^ 1« r » T tI-. j-v.-. .-* * 1-» <-» — 

U Ul/TT IT-^I \,^) xxtvt T ^^W T^O^^ff ^^^^^^ ^T^TWIT l^TTTWr 

available means cannot prevent Ae felony. 

f?) (3) Mombors Agents shall not permit any 
person other than another mombor agent to 
use an ALE firearm. 

f8^ (4} Mombors Agents who discharge any fir- 
earm while on duty, either intentionally or 
accidentally, shall file a written report to the 
director through official channels. This re- 
quirement shall not apply to members 
agents engaged in firearms practice. 

f^ [5| Members Agents shall not remove sid- 
earms from holsters except for authorized 
use in accordance with this Section, for in- 
spection by a superior officer, or for other 
authorized purposes. 

Statutory Authority G.S. I8B-500; I43B-I0. 

.1604 INVESTIGATION AND REPORTING OF 
FIREARMS INCIDENT 

(a) A mombor An agent shall immediately re- 
port to his immediate supervisor every use of a 
firearm in the performance of his duty not related 
to training. The supervisor shall carefully exam- 
ine all the facts and circumstances surrounding 
the incident and determine comphance with ALE 
rules, directives, and procedures. A full written 
report of the incident and investigation shall be 
sent through charmels to the director. 

(b) A mombor An agent involved in a shooting 
incident which is intentional or which results in 
injury or property damage shall be placed on 
leave but will be allowed to take aimual or sick 
leave pending a preliminary investigation by his 
district super\isor. This preliminary investi- 
gation shall be completed within 48 hours. If the 



59 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



preliminary investigation discloses any irregulari- 
ties regarding state or federal law or ALE policy, 
the member shall be suspended as provided in 
Regulation .202 of Subchapter 8D. If the inves- 
tigation does not disclose any irregularities, the 
member agent shall return to duty and shall be 
credited for any annual leave taken or reimbursed 
for pay lost during the preliminary investigation. 

Statutory Authority G.S. I8B-500; I43B-I0. 

SECTION .1700 - PERSONS IN CUSTODY 

.1701 SEARCH FOR WEAPONS: MALE 
PRISONERS 

Momboro Agents shall search all male prisoners 
and take possession of all weapons and evidence. 
Momboro Agents shall not conduct strip searches 
unless articulable facts exist indicating items 
subject to seizure may be found only through 
such a search. Search of body cavities is pro- 
hibited unless a search warrant authorizing such 
a search is obtained. Strip searches shall not be 
conducted without approval of » momboro an 
agent's assistant supervisor or district supervisor. 
Strip and body cavity searches of male prisoners 
shall be made only by male momboro agents with 
a male witness If practical, body cavity search 
shall be made in presence of a physician or med- 
ical technician. 

Statutory Authority G.S. J8B-500; I43B-I0. 

.1702 SEARCH OF FEMALE PRISONERS 

(a) Momboro Agents shall search female prison- 
ers only when an immediate search is necessary 
to assure the safety of the prisoner or others, or 
to preserve evidence which might otherwise be 
destroyed. 

(b) Searches made under such conditions shaU 
be made with all possible regard for decency and, 
if possible, a witness should be present. 

(c) M e mbors Agents shall not conduct strip 
searches unless articulable facts exist indicating 
items subject to seizure may be found only 
through such a search. Search of body cavities 
is prohibited unless a search warrant authorizing 
such a search is obtained. Strip searches shall 
not be conducted without approval of a mom 
bor'o an agent's assistant supervisor or district 



supervisor. Strip and body cavity searches of fe- 
male prisoners shall be made only by female 
memboro agents with a female witness. If prac- 
tical, body cavity search shall be made in pres- 
ence of a physician or medical technician. 

Statutory Authority G.S. I8B-500; I43B-I0. 



.1703 TRANSPORTING PRISONERS 

Momboro Agents shall transport prisoners to an 
appropriate place of detention without delay and 
shall not accompany the prisoner to the prison- 
er's place of residence without the consent of a 
superior officer. 

Statutory Authority G.S. 18B-500; I43B-I0. 

.1704 TRANSPORTING FEMALE PRISONERS 

(a) Momboro Agents shall not transport female 
prisoners without a third person being present 
throughout the trip. Exceptions may be made 
whenever it is impossible or impractical to have 
a third person present. 

(b) Whenever it is necessary to transport a fe- 
male prisoner without the presence of a third 
person, momboro agents shall: 

(1) Notify the State Highway Patrol telecom- 
municator on duty of the time of arrest, 
the odometer reading, place of intended 
incarceration and the estimated time of 
arrival at that location. 

(2) Upon arrival at the destination the mom 
be* agent shall notify the patrol telecom- 
municator of the time and the odometer 
reading. 

Statutory Authority G.S. 18B-500; I43B-J0. 

.1705 PROPERTY OF PRISONERS 

Memboro Agents shall take all reasonable mea- 
sures to protect the personal property in the 
possession of prisoners at the time of arrest or 
detention. 

Statutory Authority G.S. /8B-500; I43B-I0. 

SECTION .1800 - INFORMATION TO NEWS 
MEDIA 

.1801 NEWS RELEASES 

Subject to the restrictions set forth in Regu- 
lation . 1 803 of this Section, momboro agents may 
release information concerning ALE arrests and 
investigations to news media personnel, provided 
such release of information will not jeopardize a 
continuing investigation, the apprehension of 
suspects or the prosecution of the case. 

Statutory Authority G.S. J8B-500; I43B-10. 

.1802 INFORMATION WHICH MAY BE 
RELEASED 

Momboro Agents may make public the follow- 
ing information in ABC violations and criminal 
cases which do not involve juveniles: 

(1) the name, age, place of residence, employ- 
ment, marital status or similar background 



NORTH CAROLINA REGISTER 



60 



PROPOSED RULES 



infonnation of a person charged with an of- 
fense; 

(2) the offense or violation charged, the time 
and place of arrest, whether weapons were 
found or used, description of evidence or 
contraband seized; and 

(3) the identity of investigating and arresting 
officers. 

Statutory Authority G.S. I8B-500; MSB- 10. 

.1803 INFORMATION NOT TO BE RELEASED 

Momboro Agents shaU not make public the fol- 
lowing information in ABC violations and crim- 
inal cases: 

(1) opinions or other statements as to the 
character, reputation, guilt or innocence of 
a person charged with an offense; 

(2) opinions or other statements as to the 
character or reputation of witnesses; 

(3) opinions or other statements concerning 
the credibility or anticipated testimony of 
witnesses; 

(4) admissions, confessions, statements or ali- 
bis attributed to a person charged with an 
offense; 

(5) the results of any investigative procedure, 
polygraph examination or laboratory test 
involving a person charged with an offense; 

(6) the refusal of a person charged to submit 
to any test, except that Information con- 
cerning refusal to submit to a chemical test 
for alcohol impairment may be released; 

(7) opinions or other statements concerning 
the plea of a person charged or of possible 
disposition of a charge or case; 

(8) opinions or other statements concerning 
evidence in a case or concerning points of 
argument to be presented in court; 

(9) statements concerning physical evidence 
which is not information of public record; 

(10) names of juveniles who are under investi- 
gation or who ha\e been taken into custody. 

Statutory Authority G.S. ISB-500; I43B-I0. 

.1804 ALLOWING PHOTOGRAPHS TO BE 
TAKEN 

(a) Mcmboro Agents shall not prevent photo- 
graphing of defendants in public places except in 
courtrooms and adjacent corridors as directed by 
the trial judge. 

(b) M e mbers Agents shall not pose an arrested 
person for news media photographers. 

(c) Photographers shall not be prohibited from 
taking photographs of crashed aircraft or of ve- 
hicles involved in traffic collisions. 



Statutory Authority G.S. I8B-500; I43B-I0. 

.1805 RELEASING NAMES OF DECEASED 
PERSONS 

A mombor An agent shall not release the name 
of a deceased person to the news media prior to 
notification of the deceased persons' families. 

Statutory Authority G.S. J8B-500; I43B-I0. 

SECTION .1900 - LEAVING ASSIGNED DUTY 
STATION 

.1901 LEAVING ASSIGNED AREA 

(a) Momboro, Agents, on duty, shall not leave 
their district without authorization, except that 
momboro agents may leave their district when in 
pursuit of a violator. 

oignod af©» within thoir district without authori 
nation, exoopt tfeat- momboro f»ay loavo thoir 
assign od afe» within tk« district >i i 'hon m purouit 
ef a violator ef e» official buoinoss. 

(«) UTion ft»* i» pursuit, momboro e» duty 
must has'o authoriaation from tb« district supor 
visor te loa^'o thoir assign od afea within tb© dis- 

\r\ r\ 

(4) (b^ When not in pursuit, momboro agents 
must have authorization from tfe© hoadquartoro 
their supervisor or assistant supervisor to leave 
the district. 

Statutory Authority G.S. 18B-500; 143B-10. 

.1902 LEAVING THE STATE 

(a) Mombors Agents shall not leave the state 
while on duty except when authorized by the di- 
rector or his designee, or when an emergency si- 
tuation requires. 

(b) When an emergency situation requires 
momboro agents to travel into another state, 
momboro agents shall not remain in the other 
state longer than is absolutely necessary. 

(c) Mombors Agents required to leave the state 
for emergency purposes shall be governed by the 
following: 

(1) Momboro Agents shall notify the nearest 
patrol communications center of their call 
number, destination, mission and esti- 
mated time of return to the state. 

(2) Momboro Agents shall notify the patrol 
communications center immediately upon 
their return to the state, and the informa- 
tion shall be entered on the communi- 
cations log. 

(3) Emergency travel authorization reports 
shall be filed with the district supervisor 
as soon as possible after returning to the 
state. A single copy of the report will be 



61 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



filed for record purposes only at district 
headquarters. 

Statutory Authority G.S. 188-500; I43B-I0. 

.1903 LEAVING THE STATE: PURSUIT 

(a) Momburs Agents shall not leave the state in 
pursuit of a law violator without approval of the 
district supervisor or higher authority. 

(b) Mombero Agents shall not exercise the 
power of arrest in another state nor return an 
arrested person to this state except by due proc- 
ess of law. 

Statutory Authority G.S. 18B-500; 1438- 10. 

SUBCHAPTER 81 - EFFECT AND USE OF 
MANUAL: LIABILITY 

.0001 CIVIL AND CRIMINAL LIABILITY 

This manual, Chapter 8 of Title 14A of the 
North Carolina Administrative Code, and all 
policies, rules, regulations, directives and proce- 
dures of the ALE division and the Department 
of Crime Control and Public Safety are for in- 
ternal use only, and do not enlarge any mombor's 
employee's civil or criminal liability in any way, 
nor do they enlarge any supervisor's or civilian 
administrator's civil or criminal liability in any 
way with respect to training or other supervisory 
or administrative responsibilities of every kind 
and nature. These should not be construed as 
the creation of higher standard of safety or care 
in any legal or evidentiary sense, with respect to 
third party claims. 

Statutory Authority G.S. 188-500; I43B-I0. 

.0002 VIOLATIONS OF MANUAL 

Violations of this manual. Chapter 8 of Title 
14A of the North Carolina Administrative Code, 
and all policies, rules, regulations, directives and 
procedures of the department, if proven, can be 
used solely as the basis for disciplinary action 
against » member an employee by this depart- 
ment, and then only in a non-judicial adminis- 
trative proceeding. 

Statutory Authority G.S. 188-500; 1438-10. 

CHAPTER 9 - STATE HIGHWAY PATROL 

SUBCHAPTER 9H - ENFORCEMENT 
REGULATIONS 

SECTION .0700 - USE OF PHYSICAL FORCE: 
FIREARMS 

.0703 FIREARMS PROCEDURES 



Members shall be governed by the following in 
the use of firearms: 

(1) Members shall use only patrol-issued am- 
munition in patrol-issued firearms while 
performing enforcement duties. 

(2) Members shall never fire warning shots. 

domoonont. 

whon noooDDory t» provont tiie e ocapo e^ a 

X^Ui^J^A ^^J^Ul— ^^J^^^^ U^^ ^-n-fJ- J-»«-t flj->j^.«-t f» «n r^r-^ 

oitivoly idontified a» a dongorouo folon; tke 

r^TTTTTT m^TOT yj\J KrXJLl K^L/T \J ITU \\J llUirTCC^T ^BV TtttIHW 

without danger t» other poroono. 
{4^ Momboro t»ay 6f» at dongorouo fl e eing M- 
efts only whon h» other means ef capturo 
»f arroot af» roaoonably available. 

te prevent a folony dang e rous te- human lifer 

■kUAII^ l^UUSA 13^^^^^ ^^tt ^^£^^^ ."t «-\ 1 » f ijili^i^^ ^v4Waj- 
u vA^-fTT r^TT^^y IIIU. T^ tfli,/ Um.^F ^TT^^T ^^^^^^^T ^^^^TWT 

assailabl e moans oaimot presont tii© felony. 

f?^ (3) Members shall not remove sidearms 
from holsters except for authorized use in 
accordance with this Section, for inspection 
by a superior officer, or for other authorized 
purposes. 

(*) (4) Members shall not permit any person, 
other than another member, to use patrol 
fu^earms. 

(9) (5} Members who discharge any firearm 
while on duty, either intentionally or acci- 
dentally, shall file a written report to the 
Patrol Commander through official chan- 
nels. This requirement shall not apply to 
members engaged in firearms practice. 

Statutory Authority G.S. 20- J 84; 20-/85; 20- J 87; 
20-188. 

TITLE 15 - DEPARTMENT OF NATURAL 

RESOURCES AND COMMUNITY 

DEVELOPMENT 

ly otice is hereby given in accordance with G.S. 
J 508- J 2 that the N.C. Marine Fisheries Commis- 
sion intends to amend regulations cited as 15 
NCAC 38 .0102, .0105, .0308, .0401 - .0402. 
.0404, .0501, .0504, .0701, .0801. .0901, .0905. 
.1109. .1504; 15 NCAC 3C .0203. 

1 he proposed effective date of this action is 
September 1, 1988. 

1 he public hearing will be conducted at 7:30 
p.m. on: 



NORTH CAROLINA REGISTER 



62 



PROPOSED RULES 



May 9, I9S8 - Government Complex Building, 
Bolivia; 

Mav 10, I9SS - Dixon High School Cafeteria, 
Holl'v Ridge; 

May II, I98S - East Carteret High School, 
Beaufort; 

May 12, I9S8 - Beaufort County District Court- 
room, Washington; 

May 16. I9SS - Ocracoke School Gymn, Ocra- 
coke; 

May 17. I98S - Marine Resource Center, (N.C. 
Aquarium). Manteo; 

May IS. 1988 - Ground Floor Hearing Room, 
Archdale Building, Raleigh. 



Co 



omment Procedures: Comments and state- 
ments, both written and oral, may be presented at 
the hearings. Written comments are encouraged 
and may be submitted to the Marine Fisheries 
Commission. P.O. Box 769, Morehead City, NC 
28557. These written and oral comments must 
be recei\'ed no later than May 19, 1988. 

CHAPTER 3 - MARINE FISHERIES 

SLBCHAPTER 3B - FISHERIES REGULATIONS 
FOR COASTAL WATERS 

SECTION .0100 - GENERAL REGULATIONS 

.0102 DEFINITIONS 

(b) 
(14) Peeler Crab -_ a blue crab that has a soft 
shell de%'eloping under a hard shell and 
having a definite pink, white, or red line 
or rim on the outer edge of the back fui 
or Hipper. 



gulation the oocrotary ef \m agonto may s e ijio aft4 
mok e such dif i position a* i* authorijod h^ kw »f 
tfe« Bntiro quantity b e ing grad e d »f aay portion 
thoroof. 



Statutory Authority G.S. 
133-221; 143B-2S9.4. 



113-134; 113-182; 



SECTION .0300 - NET REGULATIONS: 
GENERAL 

.0308 POUND NETS 

(1) It shall be unlawful to use pound or fyke 
nets in internal coastal fishing waters with- 
out the owner's identification being clearly 
printed on a sign no less than six inches 
square, securely attached on an outside cor- 
ner stake of each such net. Such identifica- 
tion must include one of the following: 
fa) owner's N.C. motorboat rogi titration 

numbor; ©f 
(^ owner's U.S. vooool dooumontation name; 

ef 
fe) own e r's test- name aft4 initials. 

(a) For pound nets, the pound net registration 
number and the owner's last name and 
initials. 

(b) For fvke nets, the owner's N.C. motor- 
boat registration number, the owner's 

vessel documentation name_^ or the 



U.S. 

owner's last name and initials. 



Statutory Authority G.S. 113-134; 113-182; 
113-221; 143B-289.4. 

SECTION .0400 - NET REGULATIONS: 
SPECIFIC 



Statutory .Authority G.S. 113-134: 143B-289.4. .0401 

.0105 LEGAL SIZES .\ND CREEL LIMITS (2) 

(e ) It shall be unlawful to possess flounder less 
than 13 inches in total length. -N^- person shall 
poof i oss aftv quantity »f floundor more than frve 
percent ef which afe te^ than 44 inchos i» total 
length. ?4*e five porcont toloranco shaU be based 
eft tfee weight ©f Ae total amount ef flounder m 
possession »f a portion th e r e of, however, when 
a method »4' determining weight is ft©*- readily 
a^ i ailablo tlw five porcont tolerance Ffiay be bas e d 
e» Ae percentage (4 flounder by number ' . vhich 
afe less than 4-4- inches. •!«■ determining whether (3) 

t4*e proportion e4' undorsizod flounder oicoods tl*e 
five porcont tol e rance limit, Ae secretary aft4 fii« 
agents afe authorij'od aft4 ompov i orod te grade 
allr &f a«y portion, ©f aftv combination €4' pef- 
tions ©f (4*e entir e quantity &4 floundor » pos 
session, tf undor '. i/ed flounder m excess ef A» 
toloranco limit afe found i» violation ©f Ak fte- 



ALBEMARLE SOUND AND 
TRIBUTARIES 

From June 1 through September 30, no giU 
net shall be used with a mesh length less 
than five inches in the Albemarle Sound and 
tributaries between the mouth of Roanoke, 
Middle, Eastmost, and Cashie Rivers and 
the U.S. 64-264 bridges across Roanoke and 
Croatan Sounds, except gill nets with a mesh 
length of three inches or less. afi4 attended 
by tbe fisherman at- aH times. No fisherman 
shall use more than 400 yards of nets with a 
mesh length of three inches or less. 

From October 1 through December 31, no 
gill net shall be used which has a mesh 
length less than three and one-half inches in 
Albemarle Sound and tributaries between 
the mouth of Roanoke, Middle, Eastmost, 
and Cashie Rivers and the U.S. 64-264 
bridges across Roanoke and Croatan Sounds 
except attended gill nets as described in (2) 



6? 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



of this Rule may be used. Gill nets which 
have a mesh length three and one-half inches 
and greater and less than four and one- 
quarter inches must be sunk to the bottom, 
set in no less than eight feet of water in the 
tributaries, ten feet of water in the Sound, 
and be no more than 35 meshes deep. 



Statutory Authority 
143B-289.4. 



G.S. J/3-J34; 113-182; 



Statutory Authority G.S. 
1 43 B- 289.4. 



113-134: 113-182; 



.0402 ATLANTIC OCEAN 

(4) EfTective September j^ 1988, From from 
October 1 through April 30, ift order t» 
protect small flounder which iHay be talton 
ift the Atlantic Ocoon, Ae Fiohorioo Direc 
tef7 baood »» reasonable aft4 prudent man 
agemont ©f marine aft4 ootuarino rooourooo, 
may be proclamation establish fishing geaf 
opeoifioations fof trawls «6e4 within throe 
nautical miles ef tbe beach, it shall be un- 
lawful to use a trawl with a tailbag mesh 
length less than 4'/2 inches and less than 30 
meshes long within three nautical miles of 
the beach. Eflective September V^ 1990, 
from October J^ through April 30, it shall be 
unlawful to use a trawl with a taUbag mesh 
length less than five inches and less than 30 
meshes long within three nautical miles of 
the beach. 



Statutory Authority G.S. 
I43B-289.4. 



113-134; 113-182; 



.0404 CURRITUCK SOUND AND ITS 
TRIBUTARIES 

(2) No seine or haul net may be used which is 
more than 900 yards in length or which has 
a mesh length of less than three and one-half 
inches. 

(4) From June 1 through September 30, no gill 
net shall be used with a mesh length of three 
five inches or less except gill nets with a 
mesh length of three and one-quarter inches 
or less which are aft4 attended by the fisher- 
man at all times. No fisherman shall use 
more than 400 yards of nets with a mesh 
length of three and one-fourth inches or less. 

Statutory Authority G.S. 113-134; 113-182; 
143B-289.4. 

SECTION .0500 - OTHER FISHING DEVICES 

.0501 TOOTHED DREDGES 

(c) It shall be unlawful to use a toothed or any 
other dredge to take oysters; 



.0504 EEL: CRAB: FISH: SHRIMP POTS 

(f) It shall be unlawful to use crab pots in 
coastal waters unless each pot contains no less 
than four escape rings that are at least 2 3/8 
inches inside diameter and located in the top and 
upper comers of outside panels of the wire mesh 
or webbing. 

(i^ (g} It shall be unlawful to use more than one 
hundred fifty pots per licensed vessel, ift Now 
pert Rivor. 

fg) (h} Any pots found in violation of this Rule 
may be removed by marine fisheries enforcement 
officers and disposed of in accordance with law. 

Statutory Authority G.S. 113-134; 113-182; 
113-221; 143B-289.4. 

SECTION .0700 - SHRIMP AND SHRIMPING 

.0701 USE OF NETS IN TAKING SHRIMP 

(c) It shall be unlawful for any person to take 
or attempt to take shrimp with a net constructed 
in such a manner as to contain an inner or outer 
liner of any mesh size. Chafmg geap &f additional 
tailbag material H»y be used eft He more than 
one half ef ti*e circumforonoo ef tbe tailbag e» 
the bottom ef the outside ef the tailbag. Net 
material used as chafmg gear shall be no less than 
4^ mesh length except that chafmg gear with 
small mesh may be used only on the bottom 
one-half of the tailbag. Such chafing gear shall 
not be tied in a manner that forms an additional 
tailbag. 

Statutory Authority G.S. 113-134; 113-182; 
143B-289.4. 

SECTION .0800 - CRABS 

.0801 TAKING OF CRABS 

(b) The following acts are prohibited: 
(1) taking, buymg, selling, or possessing any 
hard crabs measuring less than five inches 
from tip of spike to tip of spike except 
mature female crabs, and "peelers" which 
may be floated in regular crab floats. 
Crabs shall be culled where taken and all 
crabs less than legal size shall be imme- 
diately returned to the coastal fishing wa- 
ters. "Peelers" shall be separated from the 
entire catch before reaching shore or dock. 
Tolerance of not more than 10 percent by 
weight number of any portion examined 
shall be allowed. In determining whether 
the proportion of undersize crabs exceeds 
the 10 percent tolerance limit, the Fisher- 



NORTH CAROLINA REGISTER 



64 



PROPOSED RULES 



ies Director and his agents are authorized 
and empowered to grade all, or any por- 
tion, or any combination of portions of 
the entire quantity of crabs being graded, 
and may require seizure and return to the 
waters, or other disposition as authorized 
by law, of the entire quantity being 
graded, or of any portion thereof, if un- 
dersized crabs in excess of the tolerance 
limit are found; 
(2) using, for the purpose of taking hard crabs, 
any crab trawl having a mesh length of 
less than throo inohoo; four and one-half 
inches; 

Statutory Authority G.S. 113-134; 113-182; 
113-221; I43B-289.4. 

SECTION .0900 - CLAMS 

.0901 SIZE LIMIT/DAILY (HARVEST) 

LIMIT/METHOD OF TAKING CLAMS 

(a) It shall be unlawful to take, land, or possess 
aboard a vessel more than 6,250 clams per fishing 
operation from public bottom. ft*f oponingo as 
dosoribod ift («^ f^ »f tfeis Rule, tbis limit may 
ftet- apply. It shall be unlawful to take, possess, 
sell or purchase any clams (except Rangia or 
freshwater clams) less than one inch thick. 
Clams will be culled by the catcher where taken 
and all clams of less than legal size with their 
shell, shall be immediately returned to the bot- 
tom where taken. The Fisheries Director and 
his agents are authorized and empowered to 
grade all, or any portion, or any combination of 
portions of the entire quantity of clams being 
graded and may require seizure and return to 
public bottom or other disposition as authorized 
by law of the entire quantity being graded or any 
portion thereof Possession and sale of clams by 
a clam hatchery and purchase and possession of 
clams from a clam hatcherv' shall be exempt from 
this Rule. A clam hatchery is defmed as any 
operation which obtains clams through the pro- 
cess of artificial spawning and culture methods. 

(b) rv«. porf i on ohall It shall be unlawful for any 
person to take or attempt to take clams by any 
method, other than by hand tongs, hand rakes, 
or by hand, from the coastal fishing waters. &9t- 
eept- a« provided ift Paragraph («) ©f ^m% Rule. 
Regardless of the areas which may be opened by 
the Fisheries Director, He poroon ohall it shall be 
unlawful for any person to take or attempt to 
take clams by any method other than hand tongs, 
hand rakes no more than twelve inches wide or 
weighing no more than six pounds, or by hand 
in any natural or live oyster bed or in any estab- 
lished bed of aquatic vegetation which is defined 



as those marine and estuarine areas of North 
Carolina where eelgrass (Zostera marina), shoal- 
grass (Halodule wrightii), widgeon grass (Ruppia 
maritima), and smooth or salt water cordgrass 
(Spartina altemiflora) that may exist together or 
separately. These vegetation beds occur in both 
subtidal and intertidaJ zones, and may occur in 
isolated patches or cover extensive areas. In ei- 
ther case, the bed is defmed by the presence of 
and consists of entire plants (which during some 
seasons may be mostly underground) including 
the above ground leaves and the below ground 
rhizomes, together with the sediment in which 
the plant grows. 

(«^ Pormit roquiromonto aH4 the s e ason ^ 
t along clams wit4t mathanicQl mothodo af© as 
follows: 

(+) Clams shall Ret b# taken by ti*e use ef 
m e ohanioal methods e xcept by special 
pormit. Such permits may impose condi 
tions afi4 requirements reasonably nocos 
sajy fof the enforcement ef fisheries 
r e gulations aft4 fof the prudent manage 
mont &f fiohorios rosouroos. 

possess fifty clams talcen by mechanical 
methods trom public bottom until the 
FishonoG Director, acting upon the advice 
ef the director, based e» reasonable aH4 
prudent management ef marin e aft4 ©s- 
tuarine resources, may be proclamation, 

between December 4- through March Mr 
The Fisheries Director is further eH»- 
poworod te impose afty er aU ef the foi- 
lowing restrictions: 

fA^ specify numb e r ef days, aR4 

(6^ specify areas, 

(G) specify time period, an4 

f©) specify quantity and/or siaer 
{¥f Pef temporary openings made upon the 
recommendation ef Shellfish Sanitation, 
fof maintenance dredging operations, fof 

11 l.\J (.UnjJ I &, \J\ 1 T.UI I CL,RI L.1UU ^^CTy tTl ITJI I ^lU T UXC 

ef pollut e d clams te private leases, deeds, 

©f grants as p e rmitted by 44 NCAC ift 

,0W4t season as set by 44 ^iCAC ^ 

.0901 ffisef ftet apply. 

(4) (c) No person shall take clams from any 

shellfish management area which has been closed 

and posted by the state, except that the Fisheries 

Director, may open specific areas to allow the 

taking of clams and may designate time, place, 

character, o*" dimensions of any method or 

equipment that may be employed. 

(d) The Fisheries Director may, by proclama- 
tion, open only areas in Core Sound. Newport, 
North, White Oak and New Rivers and the I\VAV 



65 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



north of "BC" Marker at Topsail Beach which 
have been opened at any time from January, 
1977, through September, 1988, to the harvest 
of clams by mechanical methods. Other areas 
opened for purposes as set out in Rule .0901 (c) 
(3) will open only for those purposes. 

(e) The Fisheries Director may, by proclama- 
tion, open any coastal waters which have a water 
depth of five feet mean low water or more to the 
mechanical harvest of clams if they do not con- 
tain any natural or live oyster bed, any estab- 
lished bed of aquatic vegetation which is defmed 
as those marine and estuarine areas of North 
Carolina where eelgrass (Zostera marina), shoal- 
grass (Halodule wrightii), widgeon grass ( Ruppia 
maritima), and smooth or salt water cordgrass 
(Spartina altemiflora) that may exist together or 
separately. These vegetation beds occur in both 
subtidal and intertidal zones^ and may occur in 



isolated patches or cover extensive areas. In ei- 
ther case, the bed is defmed by the presence of 
and consists of entire plants (which during some 
seasons may be mostly underground) including 
the above ground leaves and the below ground 
rhizomes, together with the sediment in which 
the plant grows. 



Statutory Authority G.S. 1 13-134; 
1 13-221: I43B-289.4. 



113-182: 



.0905 TAKING OR UNLOADING CLAMS ON 
SUNDAY OR AT NIGHT 

(b) It shall be unlawful to unload clams from 
any vessel or remove any vessel containing clams 
from the water on Sunday or between two hours 
after sunset and sunrise on any day. oxcopt that 
ift Now Hanover, P e nd e r aft4 Brunswick Coun 

Bunoot. Clams taken on Sunday under the pro- 
visions of 3B .0905 (a) are exempt from the 
Sunday unloading prohibition in this Subsection. 



Statutory Authority G.S. 113-134: 
I43B-289.4. 

SECTION .1100 - OYSTERS 



113-182; 



.1109 TAKING OR UNLOADING OYSTERS 
ON SUNDAY OR AT NIGHT 

(b) It shall be unlawful to unload oysters from 
any vessel or remove any vessel containing oy- 
sters from the water on Sunday or between two 
hours after sunset and sunrise on any day, oxcopt 
that- m Now Ilanovor, Pendor, aft4 Brunowick 
Countioo, oystoro may be unloadod untU twe 
hours altef suns e t. Oysters taken on Sunday 
under the provisions of 3B .1 109 (a) are exempt 
from the Sunday unloading prohibition in this 
Subsection. 



Statutory Authority G.S. 113-134; 113-182; 
I43B-289.4. 

SECTION .1500 STRIPED BASS 

.1504 SEASON AND SIZE LIMIT: 
ATLANTIC OCEAN 

(a) It shall be unlawful for any person to pos- 
sess striped bass taken in the Atlantic Ocean less 
than 34 inohoo Ie«g (total length), the size limit 
as determined by the Atlantic States Marine 
Fisheries Commission in their Interstate Fisher- 
ies Management Plan for striped bass. The 
Fisheries Director shall issue proclamations nec- 
essary to bring North Carolina's size limit in 
compliance with the Interstate Fisheries Man- 
agement Plan. 

Statutory Authority G.S. 113-134; 113-182; 
I43B-289.4. 

SUBCHAPTER 3C - LICENSES: PERMITS: AND 
LEASES 

SECTION .0200 - PERMITS 

.0203 PERMIT FOR MECHANICAL HARVEST 
OF CLAMS 

(c) Revocation or Suspension. The permit will 
be revoked or suspended under the following 
conditions: 

(1) If any permit holder foiis te lite a report 
ef tl^ daily catch ef clams te- tke division 
hf tl^ 44tk ef tke following month, his 
permit shall be st tspandod. Forms fef 6^- 
ing t^ reports will be mail e d ^ permit 
hold e rs ef may be obtained from marine 
fish e ries insp e ctors. P e rmits ff^e^ be feis- 
oued M days afleF r e ceipt ef r e ports, re- 
fuses to provide clam harvest iriformation 
upon contact by division staff, either by 
telephone or in person, his permit shall 
be suspended. Permits may be reinstated 
ten days after requested information is 
provided. 

(2) Upon conviction of violation of any ma- 
rine fisheries law, regulation, or procla- 
mation involving the use of mechanical 
methods, the owner's permit will sus- 
pended for no less than the following time 
periods: first conviction — 10 days; sec- 
ond conviction within three years -- 30 
days; third conviction within three years 
— 60 days; and upon the fourth conviction 
within a three-year period, the permit will 
be permanently revoked. 

(3) Upon conviction of violation of Regu- 
lation 15 NCAC 3B .1111 or conviction 



NORTH CAROLINA REGISTER 



66 



PROPOSED RULES 



of taking clams with the use of mechanical 
methods from coastal waters that are 
closed by proclamation because of p>ol- 
lution, the owner's permit will be sus- 
pended for 30 days for the first conviction, 
and after the second conviction within a 
three-year period the permit will be per- 
manently revoked. 
(4) !n the event the person makes application 
for a new permit during the period of 
suspension, no new permit wiU be issued 
during the time specified in this Rule. In 
cases of permanent revocation the mini- 
mum waiting period before application for 
a new permit will be considered will be six 
months; then only after a hearing before 
the Fisheries Director or his agent and a 
finding that issuance of the permit will be 
in the best interest of fisheries manage- 
ment may a new permit be issued. 

Statutory Authority G.S. 113-134; 113-182; 
143B-289.4. 

■k-k-k-k-k-k-k-k-k********* 



SECTION .0200 - THE ESTUARINE SYSTEM 

.0208 USE STANDARDS 

(b) Specific Use Standards 
(6) Docks and Piers 
(B) To preclude the adverse effects of 
shading marsh coastal wetlands vege- 
tation, otruotureo which af© built »¥ef 
vogotatod fuetf^ docks and piers built over 
coastal wetlands shall not exceed six feet 
in width, oxoopt tfeat "T"s Bf and plat- 
forms associated with residential piers 
must be at the waterward end, a?© net re- 
Dtrictod te^ thoQO dim e nDiono b«t cannot 

foetr and must not exceed a total area of 
500 sq. ft with no more than six feet of 
the dimension perpendicular to the marsh 
edge extending over coastal wetlands. 
Water dependent projects requiring piers 
or wharfs of dimensions greater than those 
stated in this Rule shall be considered on 
a case-by-case basis. 

Statutory Authority G.S. 
113A-107(b); 113A-1 13(b). 



113A-107(a); 



1\ otice is hereby given in accordance with G.S. 
1 SOB- 1 2 that the Division of Coastal Management 
intends to amend the regulation cited as 15 NCAC 
7H .020S(b)(6)(B). 

1 he proposed effective date of this action is Au- 
gust 1, 19S8. 

1 he public hearing will be conducted at 10:00 
a.m. on May 24, 1988 at Division of Marine 
Fisheries Conference Room, 341 1 Arendell Street, 
Morehead City, NC. 

(comment Procedures; All persons interested in 
this matter are invited to attend the public hearing. 
The Coastal Management Division will receive 
written comments up to the date of the hearing. 
Any person desiring to present lengthy comments 
is requested to submit a written statement for in- 
clusion in the record of proceedings at the public 
hearing. Additional information concerning the 
hearing or the proposal may be obtained by con- 
tacting Portia Rochelle, Division of Coastal .Man- 
agement, P.O. Box 27687, Raleigh. NC 27611. 
(919) 733-2293. 

CHAPTER 7 - CO.\STAL MANAGEMENT 

SUBCHAPTER 7H - STATE GUIDELINES FOR 
ARE.VS OF ENMRONMENTAL CONCERN 



■k'k'k'k'k'kk'k'k'k'kkkkkk-k'k 

ly Otice is hereby given in accordance with G.S. 
1 SOB- 12 that the Division of Coastal Management 
intends to amend the regulation cited as 15 NCAC 
7H .0304. 

1 he proposed effective date of this action is Au- 
gust 1, 1988. 

1 he public hearing will be conducted at 7;00 
p.m. on 

Monday, May 16, 1988 - New Hanover County 
Library, 201 Chestnut Street, Wilmington, NC; 

Tuesday, May 17, 1988 - Currituck County 
Courthouse, Court Room, 2nd Floor, Currituck, 
NC; 

Wednesday, May 18, 1988 - Onslow County 
Courthouse, Jacksonville, NC; 

Thursday, May 19, 1988 - Southport City Hall, 
Aldermans' Chamber, 201 E. Moore St., South- 
port, NC; 

Monday, May 23, 1988 - Pender County, 
Hampstead Community Building, HWY 17, 
Hampstead, NC; 

Tuesday, May 24, 1988 - Division of Marine 
Fisheries Conference Room, 341 1 Arendell St., 
Morehead City. NC; 

Wednesday, May 25, 1988 - N.C. Aquarium, 
Airport Road, Manteo, NC. 



67 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



Co 



-omment Procedures: All persons interested in 
this matter are invited to attend the public hear- 
ings. The Coastal Management Division will re- 
ceive written comments up to the date of the 
hearings. Any person desiring to present lengthy 
comments is requested to submit a written state- 
ment for inclusion in the record of proceedings at 
the public hearing. Additional information con- 
cerning the hearings or the proposals may be ob- 
tained by contacting Portia Rochelle, Division of 
Coastal Management, P.O. Box 27687, Raleigh, 
NC 276/1-7687, (919) 733-2293. 

CHAPTER 7 - COASTAL MANAGEMENT 

SUBCHAPTER 7H - STATE GUIDELINES FOR 
AREAS OF ENVIRONMENTAL CONCERN 

SECTION .0300 - OCEAN HAZARD AREAS 

.0304 AECs WITHIN OCEAN HAZARD AREAS 

(a) a distance landward from the first line jT 
stable natural vegetation to the recession 
line that would be established by multi- 
plying the long-term annual erosion rate 
times 60, provided that, where there has 
been no long-term erosion or the rate is 
less than two feet per year, this distance 
shall be set at 120 feet landward from the 
first hne of stable natural vegetation. For 
the purposes of this Rule, the erosion 
rates shall be those set forth in tables en- 
titled "Long Term Annual Erosion Rates 
updated through 1986" W*© ef "Long 
Term Annual Eroc i ion Rat e s Updated 
Through 19S5" (Currituck County) ap- 
proved by the Coastal Resources Com- 
mission on March 4-87 1983 aft4 Jt4y 3^ 
W84 May 27, 1988 (except as such rates 
may be varied in individual contested 
cases, declaratory or interpretive rulings). 
The tables are available without cost from 
any local permit officer or the Division of 
Coastal Management; and 

Statutory Authority G.S. 113A-J07 (a); II3A- 
107 (b); II3A-l'l3 (b) (6a); II3A-113 (b) 
(6b): I13A-II3 (b) (6d). 

•k'k-k-k-k-k-k-k-k-k'k'k-k-k-k'k-k'k 



1\ otice is hereby given in accordance with G.S. 
J SOB- 1 2 that the Department of Natural Re- 
sources and Community Development intends to 
amend regulations cited as 15 NCAC 9C .0510 - 
.0513. 



1 he proposed effective date of this action is Au- 
gust 1, 1988. 

1 he public hearing will be conducted at 7:00 
p.m. on 

May 17, 1988 - Jackson County Library, Syha, 
NC; 

May 18, 1988 - Watauga County Courthouse, 
Courtroom No. 2, Boone, NC. 

K^ omment Procedures: Written comments are 
encouraged to be submitted prior to or during the 
hearings. These may be submitted to Derryl 
Walden, Division of Forest Resources, P.O. Box 
27687, Raleigh, NC 2761 1. Oral comments may 
be presented by any interested party at the hear- 
ings. 

CHAPTER 9 - FOREST RESOURCES 

SUBCHAPTER 9C - DIVISION PROGRAMS 

SECTION .0500 - FOREST TREE SEEDLINGS 

.0510 PAYMENT FOR TREE SEEDLINGS 

All applications oxcopt Fraoor fo applioationo 
shall include full payment unless the nursery and 
tree improvement forester has approved the ap- 
plicant's credit. 

Statutory Authority G.S. 113-8; 113-35; 143B-I0 

{])■ 

.051 1 FORFEITURE OF PAYMENT FOR 
LATE CANCELLATION 

The division must guarantee sales in advance 
because tree seedhng nurseries must cover costs 
of production from seedling sales. Therefore, 
any orders cancelled after January ^ January 31 
fo* ali opooioo except Fras e r fo wLU result in for- 
feiture of total payment by the applicant. 

Statutory Authority G.S. 113-8; 113-35; 143B-10 

(J)- 

.0512 DISPOSITION AND PROCESSING 
OF TREE SEEDLING ORDERS 

(a) The department fills all tree seedling orders 
oxcopt Fraoor fo ordorG, as received and notifies 
applicants when depleted seedling supply pre- 
vents acceptance of their orders. 

(^ Sp e cial proooduros ohall apply te- Fras e r fe 
orders: 

(4^ The division accepts Fraoor fo orders at- 
department's Ral e igh office fof only 60 
days following distribution ©f appUca 
tions. 



NORTH CAROLINA REGISTER 



68 



PROPOSED RULES 



(-^ 4^ dis'ii i ion appros't'o ouoh ord e rs »» a 
first come basis; how e v e r, tf total ordoro 
oxcoud Uw total number e^' soodlingo 
Qvuilubl e . ti+e di' i ision shall employ a» 
equal shar e distribution procoso te fiil- ef- 

(4) Th<? division shall notify applicants W 
Januar .' -W ©f th^ numbor e4 Fras e r I*f 
trees th e y w+H- recei' . e Applicants shall 
make foli payment upon notification. 

Statutory Authority G.S. I13-S; 113-35; I43B-I0 
ijj- 

.0513 AITHORITYTO PRODI CF. 
CHRISIMAS TREK SF'ECIES 

(a) The division produces seedlings aft4 trans 
plants of Fraser fir and other species suitable as 
Christmas trees in its nurseries. 

fl*} Given t4*e departm e nt's limited production 
capabilities ct«4 tiw public haa' . y demand fof 
Fraser fo trees, tl+e division employs special pre- 
visions m the s*4e ef th*s species: 

(4-) ¥he disision shall si^i Fraser fo soodlings 
onl> t++ applicants who cenify that- they 
w4H- plant t^ trees i» counties ecologically 
suit e d fof the species. 1 heso counties afe 
Ale.xander. Alleghany. i\she. i\sery , Bun 
combe. Burke. Caldwell. Cherokee. Clay. 
Graham. 1 luywuod. 1 lenderson. Jackson. 
Macon. Madison. McDo.vell. Mitchell. 
Polk. Rutherford. Sum .' . S^sain, Iransyl 
' ■ ania. Watauga. Wilkes. aft4 't'ancey. 
(-3^ 4-he division shall seli Fraser fifs only t» 
applicants who e t'rtify thrtt- they wtli plant 
the tree , eft property osi i oed ef leased by 
them. 
(4i J4te di* ! ision shall limit sales t«- &fte appli 
cation pef lando' . sner. partnership, associ 
ation. family, aftd corporations. 

(b) The di\ision uiU sell Fraser fir seedlings to 
applicants for plantini; in counties that are eco- 
logicallv suitable. These counties are: Alexan- 
der, .Vlleghanv. Ashe. A\ep. . Buncombe, Burke, 
Caldwell. Cherokee. Clav. Cjraham. Havvvood, 



No 



1 lenderscm. Jackson 
well. Mitche 



Macon. .Madison. McDo- 



Folk. Rutherford. Surrw Swain. 



Iransvh'ania. Watauga. Wilkes, and "^'ancev. 



(c) For expenmental planting, the dn'ision will 
sell Fraser tir seedlin>:s to applicants in anv 
count\ of the state. 



Statutoiy Authority G.S. 1 13-S: 1 13-35: I43B-I0 
(J J- 



•k-k:k'k-k'k':k-k'k-k-k-k^'^-k-k:k-k 



otice is hereby given in accordance with G.S. 
I50B-12 that the Dept. of \RCDi Division of 
Community Assistance intends to adopt regu- 
lations cited as 15 NCAC 13P .0101 - .0104. .0201 
- .0202, .0301 - .0303, .0401 - .0403. .0501 - .0505. 
.0601 - .0604. 

I he proposed effective date of this action is Oc- 
tober I. 1988. 

1 he public hearing will be conducted at 4:00 
p.m. on June 2. 1988 at Ground Floor Conference 
Room. Archdale Building. 512 N. Salisbury 
Street. Raleigh. NC. 



G 



omment Procedures: Comments may be pre- 
sented at the hearing or submitted by mail to: 
Chandler Bryan 
Division of Community Assistance 
P.O. Box 27687 
Raleigh. NC 27611-7687. 

CHAP! ER 13 - DIVISION OF COMMLMTY 
ASSISTANCE 

SI BCHAPTER I3P - EMERGENCY SHELTER 
GRANTS PROGRAM ADMINISTRATING RULES 

SECTION .0100 - GENERAL PROVISIONS 

.0101 PURPOSE AND OBJECTIVES 

The purpose of the North Carolina Emergency 
Shelter Grants Program (hereinafter referred to 
as "ESGP") is to assist families and individuals 
who are homeless primarily due to their eco- 
nomic circumstances. Consistent with this pur- 
pose, ESGP funds will assist local governments 
in improving the quality and availability of 
emergency shelters and services for the homeless 
in their community. 

Authority G.S. 143-323: 143B-10; 143B-276; P.L. 
99-500: 24 CFR 575. 

.0102 DEFINITIONS 

The following terms shall apply to the rules of 
this Subchapter: 
(1) "Act" means the Stewart B. McKinney 

Homeless Assistance Act, P.L. 100-77, as 

amended. 
(2j "Applicant" means a local government 

which makes an appUcation pursuant to the 

provisions of this Subchapter. 
(3) "ESGP" means the state-administered 

Emergency Shelter Grants Program. 
(4j Local GoN'cmment" means any unit of 

general city or county go\emment in the 

state. 



69 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



(5) "NRCD" means the North Carolina De- 
partment of Natural Resources and Com- 
munity Development. 

(6) "Recipient" means a local government that 
has been awarded an ESGP grant and has 
executed a Grant Agreement with NRCD. 

(7) "Secretary" means the Secretary of the 
Department of Natural Resources and 
Community Development or his designee. 

(8) "Shelter" means an individual facility with 
the capacity to provide overnight lodging 
whose purpose is to assist homeless persons 
through activities funded under this Sub- 
chapter. For purposes of this program, the 
term "shelter" excludes those facilities char- 
tered and intended to function primarily as 
foster care or similar children's facilities or 
to serve victims of domestic violence. 

(9) "State" means the state of North Carolina. 
(10) "Subrecipient" means a nonprofit ser- 
vice-providing agency that a recipient con- 
tracts with to carry out services and activities 
funded under this Subchapter. 

Authority G.S. 143-323; 143B-I0; 24 CFR 575.3; 
P.L. / 00-77. 

.0103 WAIVERS 

The Secretary may waive any requirements of 
this Subchapter not required by law whenever 
he determines that undue hardship to appUcants, 
recipients or beneficiaries will result from apply- 
ing the requirements and where application of the 
requirements would adversely affect the purposes 
of the Act. 

Authority G.S. 143-323; I43B-I0; P.L. 100-77; 
24 CFR 575. 

.0104 ELICIBLE APPLICANTS 

Eligible applicants are all local governments. 



Authority G.S. 
CFR 575.21. 



143-323; I43B-I0; I50B-I4; 24 



Authority G.S. 143-323; I43B-I0; 
575.23. 



24 CFR 



SECTION .0200 



EMCIBLE AND INELIGIBLE 
ACTIVITIES 



.0201 ELIGIBLE ACTIVITIES 

This Subchapter, in accordance with G.S. 
1 SOB- 14(c), adopts by reference as eligible activ- 
ities those Operations activities described as such 
in 24 CFR 575.21(a)(3) and in corresponding 
sections of the Act, as amended. Copies of these 
sections of federal law and regulation are avail- 
able for pubhc distribution from the Division of 
Community Assistance of NRCD. 



.0202 INELIGIBLE ACTIVITIES 

This Subchapter, in accordance with G.S. 
15GB- 14(c), adopts by reference as ineligible ac- 
tivities those activities described as such in the 
Act and in 24 CFR 575.21(b), as well as in 24 
CFR 575.21(a)(1) and (2), as amended. Copies 
of these sections of federal law and regulation are 
available for pubhc distribution from the Divi- 
sion of Community Assistance of NRCD. 

Authority G.S. 143-323; I43B-I0; I50B-I4; 24 
CFR 575.21. 

SECTION .0300 - GENERAL REQUIREMENTS 

.0301 APPLICATION REQUIREMENTS 

(a) Local governments are required to submit 
applications in a manner prescribed by NRCD 
ill order to be considered for funding. Selection 
of apphcations for funding will be based prima- 
rily on information contained in the apphcation, 
thus applications must provide sufficient infor- 
mation for NRCD to evaluate them. 

(b) AppUcants may apply for more than one 
grant and be awarded more than one grant, pro- 
viding the total amount of funds awarded to a 
single sheher does not exceed the ma.ximum lim- 
its described in Rule .0302 of this Section. 

(c) NRCD shall designate specific dates for 
submission of ESGP grant apphcations. Grant 
apphcation submission dates will be announced 
by NRCD a minimum of 20 days before the date 
apphcations are due. 

(d) Apphcations must be received by NRCD 
administrative offices in Raleigh before 5:00 p.m. 
on the submission date or, if sent by mail, must 
be postmarked on or before the submission date. 

(e) The apphcant shall certify to NRCD that 
it win comply with all apphcable federal and state 
laws, regulations, rules and executive orders. 

(1) Copies of these federal and state docu- 
ments are available for pubhc distribution 
from the Division of Community Assist- 
ance of NRCD. 

Notwithstanding the provisions of Para- 
graph (d) in this Rule, certifications of 
comphance may be postmarked or re- 
ceived by NRCD up to two weeks after 
the date the application is due. This pro- 
vision applies only to certifications. 

(f) Apphcants must comply with the Act, all 
apphcable federal and state laws, regulations, 
rules, exccuti\e orders and guidelines issued by 
NRCD. 



(2) 



NORTH C.AROLIN.i REGISTER 



PROPOSED RULES 



Authority 
575.61. 



G.S. 143-323; I43B-I0; 24 CFR Authority G.S. 143-323; I43B-10; 24 CFR 575. 



.0302 SIZE OF GRANTS 

(a) The maximum amount which may be ap- 
plied for is five thousand dollars ($5,000) per 
shelter. 

(b) The minimum grant which may be appUed 
for is one thousand dollars ($1,000). 

(c) Notwithstanding the provisions of Para- 
graphs (a) and (b) in this Rule, NRCD reserves 
the right to award grants for less than the re- 
quested amount in the event that the total 
amount of funds requested exceeds the total 
amount of funds available. NRCD also reserves 
the nght to award grants exceeding the amounl 
requested if the total amount of funds requested 
is less than the total amount of funds available. 

Authority G.S. 143-323; I43B-10: 24 CFR 575. 

.0303 RFALLOCATION 

Any ESGP funds recaptured by NRCD, as 
pro%ided for in Rule .0604 and Rule .0505 of this 
Subchapter will, if practicable, be added to the 
amount available for the next round of funding. 
If this is not feasible, the recaptured funds will 
be rcaUocated in a maimer to be prescribed by 
NRCD. 



A uthority 
575.41. 



G.S. 143-323; 1 438- 10; 24 CFR 



SECTION .0400 - OPERATIONS C.\TEGORY 

.0401 DEFINITION 

The operations category included those ehgible 
activities referenced in Rule .0201 of this Sub- 
chapter. 



A uthority 
575.21. 



G.S. 143-323; I43B-I0; 24 CFR 



.0402 ELIGIBILITY REQLIREMENTS 

Applications for ESGP funds must be complete 
and show that: 

(1) The application was duly authorized by the 
local governing body, or that such authori- 
zation is imminent; 

(2) Grant funds will be expended by a shelter 
as defmed in Rule .0102 of this Subchapter; 

(3) Funds will be expended within 180 days of 
the date of the grant award; 

(4) All federal requirements wUl be met, in- 
cluding: 

(a) Matching Resources - 24 CFR 575.51; 

(b) Contmuation of Shelter - 24 CFR 575.53; 

(c) Nondiscrimination - 24 CFR 575.59(a). 



.0403 AWARDS 

All eligible applications received will be funded 
using a pro rata formula based on the total 
amount requested that is eligible for funding and 
the total amount available for distribution, in 
accordance with Rule .0302(c). 

Authority G.S. 143-323; J43B-/0; 24 CFR 575. 

SECTION .0500 - GRANT ADMINISTRATION 

.0501 GRANT AGREEMENT 

(a) Upon approval of the application by 
NRCD, a written grant agreement will be exe- 
cuted between the recipient and NRCD. The 
Rules in this Subchapter, application guidelines, 
subsequent guidelines prepared by NRCD, the 
approved application, and any subsequent 
amendments to the approved application shall 
become a part of the grant agreement. 

(b) The grant agreement in its original form 
and all modifications thereto shall be kept on file 
in the office of the recipient in accordance with 
Rule .0504 of this Section. 

(c) ESGP Program amendments. Recipients 
shall request prior NRCD approval for all 
amendments to the grant agreement when the 
recipient proposes to distribute all or part of its 
grant(s) to programs, shelters, or agencies other 
than those approved in the current Grant Agree- 
ment. 

(d) NRCD reserves the right to disallow any 
proposed amendment to the grant agreement. 



Authority 
575.61. 



G.S. 143-323; 143B-I0; 24 CFR 



.0502 METHOD OF ADMINISTRATION 

(a) Recipients may delegate to nonprofit sub- 
recipients the responsibility of undertaking or 
carrying out ESGP activities pursuant to 24 CER 
575.3 and 24 CER 575.23. This does not pro- 
hibit the designation of an administering agency, 
so long as no ESGP funds are used for adminis- 
trative costs. 

(b) NRCD shall make payments of ESGP 
funds to recipients on a cost-reimbursement or 
cost-incurred basis. Recipients shall request 
payment of ESGP funds in a manner prescribed 
by' NRCD. 

(c) All payments of ESGP funds to recipients 
must be for costs incurred during the period of 
the grant. Recipients will not receive payment 
for costs incurred before the execution of the 
Grant Agreement. 



71 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



Authority G.S. 143-323; 1438-10; 24 CFR 575. 

.0503 PROPERTY MANAGEMENT 
STANDARDS 

(a) Property acquired with ESGP grant funds 
shall be used to provide benefits to the homeless. 

(b) Recipients and subrecipients should use 
proceeds from the disposition of property ac- 
quired with I:SGP funds in a manner which 
provides benefit to the homeless in their com- 
munity. 

Authority G.S. 143-323; I43B-I0; 24 CFR 
575.61. 

.0504 RECORDKEEPING 

(a) NRCD, or any of NRCD's duly authorized 
representatives, shall have access to all books, 
accounts, records, reports, files, audits, and other 
papers or property of recipients or their subre- 
cipients and contractors pertaining to funds pro- 
vided under this Subchapter for the purpose of 
making surveys, audits, examinations, excerpts 
and transcripts. 

(b) Fmancial records, supporting documents 
and all other reports and records required under 
this Subchapter, and all other audits and records 
pertinent to the ESGP Program shall be retained 
by the recipient for a period of at least three years 
from the date of the closeout of the program, 
except that records shall be retained until all liti- 
gations, claims, or audit fmdings involving the 
records have been resolved. 

(c) AH records shall be sufficient to determine 
compliance with the requirements and primary 
objectives of the ESGP Program and all other 
applicable laws and regulations. All accounting 
records shall be supported by source documen- 
tation. 



Authority G.S. 
575.67. 



143-323; I43B-10; 24 CFR 



.0505 GRANT CLOSEOUTS 

ESGP grants will be closed out by NRCD in 

the following circumstances: 

(1) NRCD wUl initiate closeout procedures af- 
ter NRCD determines, in consultation with 
the recipient, that there are no impediments 
to closeout and that all ESGP funds have 
been expended. 

(2) Termination of grant for mutual conven- 
ience. Grant assistance provided under this 
Subchapter may be cancelled, in whole or in 
part, by NRCD or the recipient, pnor to the 
completion of the approved ESGP Program, 
when both parties agree that the continua- 
tion of the program no longer is feasible or 



would not produce beneficial results com- 
mensurate with the further expenditure of 
funds. 
(3) Termination for cause. The Secretary may 
terminate the recipient's entire grant, or the 
remaining balance thereof, in accordance 
with Rule .0604 of this Subchapter. 



Authority G.S. 
CFR 575.61. 



143-323; I43B-10; 159-34; 24 



SECTION .0600 - COMPLIANCE AND 
REPORTING REQUIREMENTS 

.0601 COMPLIANCE 

Recipients shall have responsibility for ensuring 
that ESGP funds are expended as stated in their 
grant agreement and in conformance with all ap- 
phcable federal and state laws, regulations, and 
guidelines, regardless of whether activities are 
carried out by the recipient or a subrecipient. 
NRCD may prescribe procedures for ensuring 
compliance with the provisions of this Rule. 



Authoritv G.S. 

575.61. ' 



143-323; I43B-I0; 24 CFR 



.0602 REPORTING 

(a) NRCD may require recipients to provide 
an interim performance report in a form pre- 
scribed by NRCD. Recipients will be notified a 
minimum of 20 days before the report is due. 

(b) The recipient shall submit an Annual Per- 
formance Report to NRCD as part of closeout 
procedures. NRCD will notify grantees of the 
date the Annual Performance Report is due. 
The Annual Performance Report shall be in a 
form prescribed by NRCD. 



Authority G.S. 
575.65. 



J 43-3 23; J43B-J0; 24 CFR 



.0603 MONITORING BY NRCD 

(a) The secretary may evaluate activities con- 
ducted under this Subchapter and their effective- 
ness in meeting the objectives of the ESGP 
program. 

(b) The secretary may conduct such evalu- 
ations using NRCD personnel, or by contract or 
other arrangement with public or private agen- 
cies. 



A uthority 
575.69. 



G.S. 143-323; 143B-I0; 24 CFR 



.0604 REMEDIES 

\^Tlen the secretar*' determines on the basis of 
a review of a recipient's performance that the 
objectives of an ESGP program described in the 



NORTH CAROLINA REGISTER 



72 



PROPOSED RULES 



grant agreement have not been met, NRCD may 
take one or more of the following actions as ap- 
propriate: 

(1) Issue a warning letter that further failure to 
comply with such requirements will result in 
a more serious sanction; 

(2) Condition a future grant; 

(3) Direct the recipient to stop the incurring 
of costs with grant amounts; 

(4) Require that some or all of the grant 
amounts be remitted to NRCD; 

(5) Reduce the level of funds the recipient 
would otherwise be entitled to receive; or 

(6) Elect not to provide future grant funds to 
the recipient until appropriate actions are 
taken to ensure compliance. 

Authority G.S. 143-323; 143B-10: 24 CFR 
575.69. 

TITLE 21 - OCCUPATIONAL LICENSING 
BOARDS 



1\ otice is hereby given in accordance with G.S. 
J50B-I2 that the \.C. State Board of Certified 
Public Accountant Examiners intends to amend 
regulations cited as 21 NCAC SF .0302, .0401; 
SG .0401. .0402, .0406, .0407; 81 .0004; 8J .0006. 

1 he proposed effective date of this action is 
September 1, 1988. 

1 he public hearing will be conducted at 9:00 
a.m. on May 23, 1988 at A'.C. State Board of 
CPA Examiners, 1101 Oberlin Road, Suite 104, 
Raleigh, NC 27605. 

y^omment Procedures: Any person interested in 
these rules may present oral comments relevant to 
the actions proposed at the public rule-making 
hearing or deliver written comments to the Board 
office not later than 9:00 a.m. on Monday. May 
23. 1988. Anyone planning to attend the hearing 
should notify the Executi\-e Director at the Board 
offices by noon on Wednesday. May 18, 1988, 
whether they wish to speak on the proposals and 
whether they will speak in favor of the proposals 
or against them. Oral presentations will be limited 
to 10 minutes per speaker. 

CHAPTER 8 - BOARD OF CERTIFIED PL BLIC 
ACCGLNTANT EXAMINERS 

SI BCIIAPTER 8F - REQLIREMENTS FOR 

CERTIFIED PL BI.IC ACCOLM ANT 

EXAMINATION AND CERTIFICATE 

APPLICANFS 



SECTION .0300 - EDUCATIONAL 
REQLIREMENTS FOR EXAMINATION 

.0302 EDUCATION REQUIREMENTS 

(d) If the second approach mentioned in Para- 
graph (a) of this Rule is selected by the applicant, 
the completion of two years in an accredited 
coUege or university or its equivalent shall mean 
that the applicant has successfully completed, or 
reasonably expects to complete at the end of the 
school term which begins before the examination 
date, at least 60 semester hours of couoo course 
work, or the equivalent in quarter hours, in a 
school, college or university accredited by one of 
the regional accrediting associations. The 60 se- 
mester hours shall include the concentration in 
accounting described in 21 NCAC 8F .0305. 
However, if the applicant fails to complete the 
necessary 60 semester hours within the specified 
time, the grades shall not be awarded. 

(e) A regional accrediting association includes 
the Southern Association of Colleges and 
Schools and comparable accrediting associations 
as indicated in the Education Directory - Col- 
leges and Universities, which is published by the 
U. S. Department of Education, National Center 
for Education Statistics. Colleges and uni' i 'oroi 
tite* universities which are members of the 
/American Assembly of Collegiate Schools of 
Business are deemed to have standards substan- 
tially equivalent to a regionally accredited insti- 
tution. 

(g) An applicant who has completed the bach- 
elor's degree or the concentration in accounting 
at a school which does not meet the requirements 
of G.S. 93-12(5) and paragraph (e) of this Rule 
shall be deemed to have completed the require- 
ments at a school, college or university approved 
by the board by: 

(1) completion, prior to filing application for 
examination, at a school meeting the re- 
quirements of paragraph (e) of this Rule, 
of 10 additional semester hours (or equiv- 
alent) of graduate courses, including six 
semester hours (or equivalent) in graduate 
accounting courses, plus enrollment for 
an advanced degree; or 

(2) completion, prior to filing application for 
examination, at a school meeting the re- 
quirements of paragraph (e) of this Rule, 
of 15 additional semester hours (or equiv- 
alent) of undergraduate courses, including 
six semester hours (or equivalent) in un- 
dergraduate accounting courses. 

Statutory Authority G.S. 93-1 2(3 J; 93-12(5). 
SECTION .0400 - EXPERIENCE 



73 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



.0401 GENERAL EXPERIENCE 
REQUIREMENTS 

(b) A masters or more advanced degree may 
h% UGod a* a substitute for one year of the expe- 
rience requirements as provided by G.S. 93-12(5). 
A law degree may be similarly substituted, pro- 
vided that it was earned with "an emphasis in 
taxation or accounting," which shall be con- 
strued to mean twelve semester hours or equiv- 
alent in accounting, including taxation. 

Statutory Authority G.S. 93-12(3); 93-12(5). 

SUBCHAPTER 8G - PROFESSIONAL ETHICS 
AND CONDUCT 

SECTION .0400 - CONTINUING 
PROFESSIONAL EDUCATION 

.0401 CONTINUING PROFESSIONAL 
EDUCATION 

(a^ Each percon dociring t© ronow a c e rtificato 
as a Certified Public Accountant muot offer sat- 
iofactoP t' ovidonoQ el^ ha' . ing complied with- the 
continuing profoooional oducation roquiromonto 
ef the board. 

fb^ (a| ^fhe r e quLTomonto ei the board includo: 
Licensees shall: 

( 1 ) oomplotion ef complete the specified num- 

ber of continuing professional education 
(CPE) hours ef CPE by December 3 1 of 
the calondar year preceding the July 1 re- 
newal date; and 

(2) the filing ef file the appropriate form satis- 

factorily completed and providing provide 
other specified information by the July 1 
renewal date, 
(e) (bl Certificate holders in active status must 
complete 40 CPE hours »f continuing profoo 
C i ional education by December 31, ef the yeaf 
procoding the feiy 4- roncval dat e , except as fol- 
lows: 

{Vf Poraono having initial cortificato appUoa 
tions approved by the board m January 
March would fte4 havo te- report CPE 
courses fof the renewal period beginning 
m J«i¥ ef the same calendar year, hat 
would have to complete 4^ CPE hours 
during the sam e calendar year. 
(5^ (_Q Persons having initial certificate appli- 
cations approved by the board in ApriJ- 
June would set have te- r e port CPE 
coursoo fof the renewal period b e ginning 
m J«ly- ef the same calondar year, htit 
would have to complete 30 CPE hours 
during the same calendar year. 
(^ (2) Persons having initial certificate appli- 
cations approved by the board in July- 



September would have to complete 20 
CPE hours during the same calendar year. 
(4) (3} Persons having initial certificate appli- 
cations approved by the board in Octo- 
ber-December would have to complete 10 
CPE hours during the same calendar year. 

(c) Any CPE hours completed during the cal- 
endar year in which the certificate is approved by 
the board may be used for that year's require- 
ment. 

(d) When an individual completes more than 
the required number of hours of CPE in any one 
calendar year, the extra hours, fie* i» excoso ef 
3© hours, not more than 20 hours may be carried 
forward and treated as hours earned in the fol- 
lowing year. A«y CPE hours completed during 
the calondar year m which the certificate is ap- 
prov e d by the board me^ be Hsed fof that year's 
requirement. 

Statutory Authority G.S. 93-12(8b). 

.0402 DEFINITIONS 

(a) "CPE" shall be construed to mean contin- 
uing professional education. 

fb^ "Field ef accounting" shall be constru e d te 
moan omploymont fof v i hioh ©fie receives com 
pensation fof either fuU time ef part time work 
ift pubhc accounting, govomxnental ef other 
not for profit accounting, industrial, commercial, 
ef fmancial accounting, ef accounting oducation. 

(e^ (b} "Active" shall be constru e d te- mean a 
CPA whe is rocoiving oomponsation fof activo 
afi4 current participation i» the fiel4 ef account 
ifigr "Active" shall be construed to mean anyone 
possessing a North Carolina certificate who has 
not other^vise been granted "Retired", 
"Inactive", or "Conditional" status. 



(d) (c} "Inactive" shall be construed te- mean a 
CPA whe is set rec e iving any compensation fef 
current personal sorsices ift the field ©f account 
iftgr "Inactive" shall rise be construed te- m e an 
a CPA ¥4*e resides outside the State ©f North 
Carolina afid wh© is aet receiving a«y comp e n 
sation fef current personal sor^icos i» the fi e ld ©f 
accounting performed ift ef fof poroono, corpo 
rations ©f other entities ift North Carolina m*4 

Ti rK j-i A r-L 1-^.-^ n .-\f ^ i f-Ji \tr\ t\-\ x c- ft -"i J- £a tl-i ill t -it 1^ ■^■^»-t 'T' f^-H 

pubho accountant" ©f other words, letters, ab- 
breviations, symbols ©f oth e r moans ef idontifi 
cation te indicat e that the porson using same has 
boon admitt e d t© practice as a certified public 
accountant. "Inactive" shall be construed to 
mean an individual who voluntarily surrenders a 
certificate under 21 NCAC 8J .0006 or who is a 
North Carolina certificate holder with a legal re- 
sidence outside the State of North Carolina and 



NORTH CAROLINA REGISTER 



74 



PROPOSED RULES 



who docs not practice the profession of accoun- 
tanc\- within the State of North CaroUna. 
fe^ (d| "Retired" shall be construed to mean a 
C PA anyone possessing a North Carolina certif- 
icate who IS not receiving aftv earned compen- 
sation, fof current p e nionol f ' Or i icoo. 

(e) "Conditional" shall be construed to mean 
an\one who holds a North Carolina certificate 
of qualillcation uith restrictions as imposed by 
the board. 

(f) ''Board" shall be construed to mean the 
North Carolma State Board of CertLfied Public 
Accountant bxaminers. 

(iz) "Calendar year" shall mean the j_2 months 
besinnina Januar*" 1 and ending December 31. 



Slaiutory Authority G.S. 93-l2(8b). 

.0406 COMPLI.WCE 

(a) Aii CPi\o claoL . ifiod a* activ e mu&t 6Je a CPE 
r i gportmg form tȴ Ai* hiW 4- ronowal dati?. 
CPA ' j ' . i i ho isv inacti' ie e* rt'tui- ' d mu^a fiii* a» al- 
fidusit ef L ' XL ' mption from t4w renewal require 
meni bv Ai* :kiiv 4- renev i al date. CPF reporting 
forms must be filed by the July J_ renewal date. 
C P As who want to he classified as retired must 
file an application for retirement status and ex- 
emption from the CPF requirements bv the July 
_1_ renewal date. Inactiv i* e* Retired CPAs who 
desire to comply with the CPE requirements 
must fde a CPE reporting form by the July 1 re- 
newal date. 

(c) Unless otherwise exempt under these P^og 
ulationo, Rules, a licensee failing to satisfy the 
CPE requirements shall foricit his her CPA cer- 
tificate as provided bv G S Q3- 12( 15). h€4 be 
i!>; . u e d a r e n e ' . val Licenoe aH4 wiii b# oubject te- 
di ' jciphnary action under General Statutes ef 
North Carolina Qj 12(0) if he engageo m Ae ft<44 
e+" account in u V i ithout a vai+4 r e n e wal lic e n - j e . 
In the discretion of the board, ouch disciplinary 
action such as that noted below may be taken 
and a renewal license issued may includ e , if the 
required number of appro\ed CPE hours ha' i o 
has been taken b+rt ftfl4- bv the July j_ renewal 
deadlme rather than durmg the prccedmg calen- 
dar year, the following: 

(1) A conditional license upon such condi- 
tions as the board may deem appropriate 
may be issued pursuant to G.S. 93-12(8b) 
for the first such offense during the pre- 
ceding five calendar years. 

(2) A censure and a conditional hccnse upon 
such conditions as the board may deem 
appropriate pursuant to G.S. 19-12(8b) 
and upon payment of a fme of one hun- 
dred doUars ($100.00) for the second such 



offense during the preceding five calendar 
years. 
(3) Non-renewal of the license for a period of 
time not less than thirty days and until 
reinstatement requirements pursuant to 
81 .0004 are met for the third such offense 
during the preceding five calendar years. 

Statutory Authority G.S. 93-12(Sb). 

.0407 EXEMPTION AND SLBSEQLENT 
REINSTATEMENT 

(a) A liconooo vrbo is inactive »f retired as de- 
6fte4 » 24- >;CAC *a ^^03 sbali be exempt 
from the renewal requirement ef 24- NCi\C 8^ 
.O ' lQl upon filing witfe tbe board a» affidavit »f 
exemption &» a form provided by tbe board. 
Any individual on inactive or retired status may 
apply for reinstatement to active status. Such 
applicant must furnish to the board evidence of 
satisfactory completion of 40 hours of CPE 
courses (pursuant to 21 NC.AC 8G .0403 - .0404) 
during the 12-month period immediately preced- 
ing the apphcation for reinstatement. 

(b) i ' Vny applicant fof romi i tatement must fof- 
fti+4* to Ae board e'ridenco »f - jatisfactorv' com 
pletion »f 4© hours €>f acceptable CPE couri p OG 
during Ae twehe month period Lmmodiatoly 
procoding tbe hcenoeo's application fof rein 
statement te- active status. Effective January 1, 
1989, eight of the required hours must be credits 
derived from a course or examination in North 
Carolina Accountancy Laws and Rules (includ- 
ing the Code of Ethics contained therein), as 
descnbod m 34- NCAC 8G t»40^ Thrs require- 
ment may be met by timely passage of a written, 
open-book examination approved bv the board. 
Any CPE course hours used to satisfy the re- 
quirements for reinstatement may also be used 
to satisfy the CPE renewal requirement. 

Statutory^ Authority G.S. 93-12(8b). 

SL BCHAPTER 81 - REVOCATION OF 

CERTIFICATES AND OTHER DISCIPLIN.\RY 

ACTION 

.0004 REINST.4TEMENT 

(a) A person, partnership or professional cor- 
poration whose certificate or registration has 
been forfeited, revoked or suspended or who has 
been censured pursuant to G.S. 93-12(9) may 
apply to the board for modification of the forfei- 
ture, revocation, suspension or censure at any 
time after the :ffective date of the board's deci- 
sion imposing it: except Aa* howe\er, if any 
previous application has been made with respect 
to the same penalty, no additional application 
will be considered before the lapse of an addi- 



75 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



tional year following the board's decision on the 
last previous application. 

Statutory Authority G.S. 55B-I2; 93-12(9). 

SUBCHAPTER 8J - RENEWALS AND 
REGISTRATIONS 

.0006 SURRENDERED CERTIFICATES 

(a) A certificate holder who determines that the 
certificate of qualification issued by thk the board 
is no longer needed or desired may voluntarily 
surrender the certificate and shall be considered 
inactive. 

Statutory Authority G.S. 93-12(5); 93-l2(8a); 
93-l2(8b). 

TITLE 26 - OFFICE OF ADMIMSTRAXrV E 
HEARINGS 



1\ otice is hereby given in accordance with G.S. 
J SOB- J 2 that the Office of Administrative Hear- 
ings intends to amend regulation cited as 26 
NCAC3 .0001. 

1 he proposed effective date of this action is A u- 
gust I, 1988. 



1 he public hearing will be conducted at 9:00 
a.m. on May 16, 1988 at First Floor Hearing 
Room, Lee House, 422 North Blount Street, Ra- 
leigh, N. C. 

\.^omment Procedures: Comments may be sub- 
mitted in person or in writing at the public hearing 
or in writing prior to May 16, 1988, to Beecher 
R. Gray, Administrative Law Judge, P. O. Drawer 
11666, Raleigh, N. C. 27604. 

CHAPTER 3 - HEARINGS DIVISION 

.0003 GENERAL 

Governed by the principles of fairness, uni- 
formity, and punctuality, the following general 
rules apply: 
(4) Except as otherwise provided by statutes 
or b^ rules promulgated under G.S. 
150B-38(h), the rules contained in this 
Chapter shall govern the conduct of con- 
tested case hearings under G.S. 150B-4Q 
when an Administrative Law Judge has been 
assigned to preside in the contested case. 



Statutory Authority G.S. 
l50B-40(c). 



7A-750: 150B-II: 



NORTH CAROLINA REGISTER 



76 



FINAL RULES 



U pon request from the adopting agency, the text of rules will be published in this section. 

W hen the text of any adopted rule is identical to the text of that as proposed, adoption of the rule 
will be noted in the "List of Rules Affected" and the text of the adopted rule will not be republished. 

/l dopted ndes filed by the Departments of Correction, Revenue and Transportation are published 
in this section. These departments are not subject to the prcnisions ofG.S. I50B, Article 2 requiring 
publication of proposed rules. 



TITLE 21 
OCCUPATIONAL LICENSING BOARDS 

CHAPTER 22 
BOARD OF HEARING AID DEALERS AND FITTERS 

SUBCHAPTER 22A - BOARD RULES 

SECTION .0100 - ORGANIZATIONAL RULES (REPEALED) 

.0101 FORMAL NAME 

.0102 PHYSICAL ADDRESS 

.0103 OFFICE HOURS 

.0104 MAILING ADDRESS 

.0105 PL RPOSHS AND RESPONSIBILITIES 

SECTION .0200 - IHE BOARD 

.0201 COMPOSITION (REPEALED) 

.0202 QUORUM (REPEALED) 

.0203 MEETINGS OF THE BOARD 

.0204 APPOINTMENTS 

.0205 QUALIITCATIONS (REPEALED) 

.0206 ANNUAL REPORT (REPEALED) 

SECTION .0300 - DEFINITIONS 

.0301 DEFINITIONS .AND INTFRPRET.ATIONS 

.0302 BOARD (REPE.ALFD) 

.0303 LICENSE 

.0304 HEARING AID (REPEALED) 

.0305 PR.ACTICE OF SELLING AND FITTING HEARING AIDS (REPEALED) 

.0306 DISORDERS OF HI;ARING (REPEALED) 

.0307 REGISTERED APPRENTICE 

.0308 REGISTERED APPLICANT 

.0309 DULY \L\DE APPLICATION 

.0310 ONE FULL YEAR OF APPRENTICESHIP 

.0311 DIRECT SUPERVISION 

.0312 AUDIOMETER 

SI BCIIAPIER 22B - RLLE MAKING PROCEDLRES 

SECTION .0100 - PETITIONS FOR RLLE MAKING 

.0101 PETITIONS 

.0102 CONII-NIS 01- PETITIONS (REPEALED) 

.0103 AMENDMENT OR RI PI AI (REPEALED) 

.0104 CONTENTS OF PE m IONS (REPEALED) 

.0105 GRANTING OR DENYING PETITIONS (REPEALED) 



77 NORTH CAROLINA REGISTER 



FINAL RULES 



.0106 RECOMMENDATION (REPEALED) 
.0107 FINAL DECISION (REPEALED) 

SECTION .0200 - NOTICE (REPEALED) 

.0201 NOTICE TO PARTIES 

.0202 MAILING LIST 

.0203 PUBLIC NOTICE 

.0204 INFORMATION REQUESTS 

SECTION .0300 - HEARINGS 

.0301 LOCATION OF HEARINGS (REPEALED) 

.0302 COMMENTS 

.0303 REQUEST FOR ORAL PRESENTATIONS (REPEALED) 

.0304 ORAL PRESENTATION (REPEALED) 

.0305 WRITTEN STATEMENT (REPEALED) 

.0306 ACKNOWLEDGMENT (REPEALED) 

.0307 CONTROL OF HEARINGS 

.0308 REQUEST FOR STATEMENT ON FINAL DECISION (REPEALED) 

.0309 RECORDS (REPEALED) 

SECTION .0400 - EMERGENCY RULES (REPEALED) 

.0401 POWER TO ISSUE 

.0402 LENGTH OF EFFECTIVENESS 

SECTION .0500 - DECLARATORY RULINGS 

.0501 REQUEST FOR DECLARATORY RULING 

.0502 CONTENTS OF REQUEST (REPEALED) 

.0503 REFUSAL TO ISSUE DECLARATORY RULING 

.0504 ISSUANCE OF DECLARATORY RULING (REPEALED) 

.0505 PROCEDURE (REPEALED) 

.0506 VALIDITY OF RULE (REPEALED) 

.0507 CIRCUMSTANCES (REPEALED) 

SECTION .0600 - FEES (REPEALED) 
.0601 FEE SCHEDULE 
.0602 AMOUNT 

SUBCHAPTER 22C - CONTESTED CASES 

SECTION .0100 - GENERAL RULES 

.0101 ADMINISTRATIVE HEARINGS PROCEDURES 
.0102 HEARINGS (REPEALED) 

SECTION .0200 - REQUEST FOR A HEARING (REPEALED) 

.0201 REQUEST 

.0202 PREREQUISITES 

.0203 WRITTEN REQUEST 

.0204 CONTENTS OF REQUEST 

.0205 ACKNOWLEDGMENT 

SECTION .0300 - THE GRANTING OF HEARING REQUESTS (REPEALED) 

.0301 GRANTING A HEARING 

.0302 CRITERIA 

.0303 ISSUANCE 

.0304 APPROVAL OF REQUEST 

SECTION .0400 - WAIVER (REPEALED) 
.0401 FAILURE TO NOTIFY 
.0402 FAILURE TO APPEAR 



NOR TH CAROLINA REGIS TER 78 



FINAL RULES 



SFXTION .0500 - NOTICE (RKPEALED) 

.0501 REASONABI F NOTICIi 

.0502 NOTICF AND HEARING 

.0503 ADDinONAL INFORMATION ON NOTICES AND HEARINGS 

.0504 WRI riEN ANSWERS TO NOTICE 

SECTION .0600 - WHO SHALL HEAR CONTESTED CASES (REPEALED) 

.0601 HEARING OFFICERS 
.0602 APPOINTMENT 

SECTION .0700 - PLACE OF HEARING (REPEALED) 

.0701 LOCATION 

.0702 ALTERNATIVE LOCATIONS 

SECTION .0800 - INTERVENTION (REPEALED) 

.0801 REQUIRE.MENTS 

.0802 PERMISSIVE INTERVENTION 

.0803 DISCRETIONARY INTERVENTION 

.0804 ADVISABILITY 

.0805 WRITTEN PETITION 

.0806 PETITION FOR INTERVENTION 

.0807 ALLOWANCE 

.0808 DENIAL 

SECTION .0900 - HEARING OFFICERS 

.0901 HEARING OFFICER (REPEALED) 

.0902 CONDUCT (REPEALED) 

.0903 ALLEGED BIAS OF BOARD MEMBER 

.0904 BIAS CLAIMED BY PARTY (REPEALED) 

.0905 AFFIDAVIT OF DISQUALIFIC.A.TION (REPEALED) 

.0906 FILING AFFIDAVIT (REPEALED) 

.0907 DISQUALIFICATION (REPE.'VLED) 

.0908 NEW HEARING (REPEALED) 

.0909 DISQUALIFICATION OF ENTIRE BOARD (REPEALED) 

.0910 DETERMINATION TO CONTINUE (REPEALED) 

.0911 RECORDS (REPEALED) 

SUBCHAPTER 22D - CONDUCT OF THE CONTESTED CASE 

SECTION .0100 - FAILURE TO APPEAR (REPEALED) 

.0101 PROCEEDING WITHOUT PARTY 

.0102 ALTERNATIVES OF HEARING OFFICER 

.0103 CONTINUANCES 

.0104 PETITION TO REOPEN 

.0105 CRITERIA FOR REOPENING A CASE 

SECTION .0200 - PREHEARING CONFERENCE (REPEALED) 

.0201 DISCRETION TO HOLD PREHEARING CONFERENCE 

.0202 PURPOSES 

.0203 NATURE OF PREHEARING CONFERENCE 

.0204 NOTICE OF PREHEARING CONFERENCE 

.0205 SIMPLIFICATION OF ISSUES 

SECTION .0.100 - SI BPOENAS (REPEALED) 

.0301 AITHORITY TO ISSUE 

.0302 ISSIANCE 

.0303 SERVICE OF SUBPOENAS 

.0304 UNREASONABLE SUBPOENAS 

.0305 OBJECTIONS 

.0306 STATEMENT OF REASONS 



79 NOR TH CA R OLL\A REGIS TER 



FINAL RULES 



.0307 SERVICE or OBJECTIONS 

.0308 RESPONSES TO OBJECTIONS 

.0309 HEARINGS ON SUBPOENA CHALLENGES 

.0310 RULINGS 

SECTION .0400 - DISCOVERY (REPEALED) 

.0401 DISCOVERY OF INFORMATION 

.0402 FAILURE TO SUBMIT TO DISCOVERY 

SECTION .0500 - DEPOSITIONS (REPEALED) 

.0501 USE OF DEPOSITIONS 

.0502 PROCEDURE FOR TAKING A DEPOSITION 

.0503 RULINGS ON DEPOSITIONS 

SUBCHAPTER 22E - DECISION IN CONTESTED CASES 

SECTION .0100 - PROPOSALS FOR DECISIONS (REPEALED) 
.0101 HEARING OFFICERS 
.0102 PROPOSAL FOR DECISION 
.0103 EXCEPTIONS 

SECTION .0200 - OBJECTIONS TO BOARD DECISIONS (REPEALED) 

.0201 FORM 

.0202 RECORDS 

.0203 SUBSTANTIAL PREJUDICE 

.0204 ORAL ARGUMENTS 

.0205 NOTICE 

SUBCHAPTER 22F - GENERAL EXAMINATION AND LICENSE PROVISIONS 

.0001 TIME OF EXAMINATIONS 

.0002 PLACE OF EXAMINATIONS (REPEALED) 

.0003 SUBMISSION OF APPLICATIONS AND FEES 

.0004 QUALIFICATIONS 

.0005 PASSING GRADES 

.0006 GRADING (REPEALED) 

.0007 COMMUNICATION OF RESULTS OF EXAMINATIONS 

.0008 REVIEW OF EXAMINATION 

.0009 FEES (REPEALED) 

.0010 REFUNDS 

.0011 RECIPROCITY (REPEALED) 

.0012 LICENSES (REPEALED) 

.0013 APPRENTICESHIP REQUIREMENTS 

.0014 TRAINING AND SUPERVISION 

.0015 SPONSORS' DUTIES 

.0016 SEPARATION OF APPRENTICE AND SPONSOR 

.0017 APPRENTICE TERMINATION (REPEALED) 

.0018 CHANGE OF ADDRESS 

.0019 SPONSORS' RESIDENCE (REPEALED) 

.0020 CONTINUING EDUCATION 

SUBCHAPTER 22G - RENEWALS AND REGISTRATIONS (REPEALED) 

.0001 ANNUAL RENEWAL OF CERTIFICATES 
.0002 FORFEITURE 

SUBCHAPTER 22H - REVOCATION OF LICENSES (REPEALED) 

.0001 PETITION AND BOARD PROCEDURES 

.0002 PROCEDURE WHERE MEMBER OF BOARD INVOLVED 



NOR TH CAROLINA REGIS TER SO 



FINAL RULES 



SLBCHAPTER 221 - PROFESSIONAL AFFAIRS 

.0001 CLIENTS' INTERFST 

.0002 PROFICIENCY (REPEALED) 

.0003 VLSUAL INSPECTION 

.0004 MEDICAL REFERRAL (REPEALED) 

.0005 MEDICAL REFERRAL OF OTHER HEARING PROBLEMS (REPEALED) 

.0006 DISCLOSURE 

.0007 AUDIOMETERS (REPEALED) 

.0008 CALIBRATION CHECK FOR AUDIOMETERS 

.0009 APPROVAL OF CALIBRATERS 

.0010 STANDARDS FOR AUDIOMETERS 

.0011 SYMBOLS FOR AUDIOGRAMS 

.0012 DISPLAY OF PRINTED CERTIFICATES 

.0013 LOCATION FOR PROVISION OF SERVICE 

SUBCHAPTER 22J - CODE OF ETHICS 

.0001 FRAUD (REPEALED) 

.0002 EMPLOYMENT OF UNQUALIFIED PERSONS 

.0003 ADVERTISING 

.0004 USE OF LICENSE BY ANOTHER (REPEALED) 

.0005 DEFAMATION OF COMPETITORS 

.0006 DISPLAY OF PRODUCTS (REPEALED) 

.0007 PRICES 

.0008 USE OF TRADEMARKS 

.0009 OBTAINING INFORMATION ABOUT COMPETITORS 

.0010 INDUCEMENTS TO PURCHASE 

.0011 MISREPRESENTATION OF EDUCATION (REPEALED) 

.0012 MISREPRESENTATION OF PRODUCTS (REPEALED) 

.0013 UNETHICAL BUSINESS PRACTICES (REPEALED) 

.0014 FALSE OR CONCEALED INFORMATION 

SLBCHAPTER 22K - FORMS 

.0001 DESIGNATION 

.0002 APPLICATION FOR LICENSE 

.0003 APPLICATION FOR APPRENTICE REGISTRATION CERTIFICATE 

.0004 ACCESS TO FORMS 



81 NOR TH CA ROLINA REGIS TER 



FINAL RULES 



CHAPTER 22 - BOARD OF HEARING AID DEALERS AND FITTERS 

SLBCHAPTER 22A - BOARD RULES 

SECTION .0100 - ORGANIZATIONAL RULES 

.0101 FORMAL NAME 

.0102 PHYSICAL ADDRESS 

.0103 OFFICE HOURS 

.0104 MAILING ADDRESS 

.0105 PURPOSES AND RESPONSIBILITIES 

History Note: Statutory Authority G.S. 93D-3; I50B-I0; 150B-II; 
Eff. April 23, 1976; 
Repealed Eff. May I. 1988. 

SECTION .0200 - THE BOARD 

.0201 COMPOSITION 
.0202 QUORUM 

History Note: Statutory Authority G.S. 93D-3; 
Eff. April 23, 1976; 
Repealed Eff. May I, 1988. 

.0203 MEETINGS OF THE BOARD 

Meetings of the board shall be held quarterly or on the call of the president, the executive secretary, 
or a majority of the members of the board. The annual meeting to elect the president and the secre- 
tary-treasurer shall occur between the fifteenth day of July and the fifteenth day of August in each year. 
The dates for the quarterly meetings for the board's ensuing year and the examination preparation 
workshop dates for the upcoming calendar year shall be approved at that time. 

History Note: Statutory Authority G.S. 93D-3(b); 
Eff. April 23, 1976; 
Amended Eff. May I, 1988. 

.0204 APPOINTMENTS 

Any member of the board may continue to serve beyond his term until his successor is duly appointed 
and sworn, in accordance with G.S. 93B-10, however any holdover shall not affect the expiration date 
of the succeeding term. 

Historv Note: Statutory Authority G.S. 93B-10; 93D-3(a); 
Eff. April 23, 1976; 
Amended Eff. May I. 1988. 

.0205 QUALIFICATIONS 
.0206 ANNUAL REPORT 

History Note: Statutory Authority G.S. 93D-3; 
Eff. April 23, 1976; 
Repealed Eff. May I, 1988. 

SECTION .0300 - DEFINITIONS 

.0301 DEFINITIONS AND INTERPRETATIONS 

(a) The rules of statutory construction concerning number and gender as contained in G.S. 12-3(1) 
shall be applied in the construction of these Rules. 

(b) The definitions cited in this Section shall serve as interpretations for term appearing in Chapter 
93D of the General Statutes of North Carolina and m these Rules. In addition, the definitions con- 
tained in the Food and Drug Administration Standards concerning Hearing Aid Devices, Title 21 of the 
Code of Federal Regulations Part 801, as pubhshed in the 42nd Volume of the Federal Register (Feb- 



NOR TH CAROLINA REGIS TER 82 



FINAL RULES 



ruary 15, 1977) page 9294 are adopted herein by reference, in accordance with G.S. 150B-14(b), with 
the following additions and amendments: 

(1) "Reconditioned" shaU mean that the condition of the hearing aid is the same as a used hearing 
aid. 

(2) "Audiologist" shall mean any individual holding a valid non-temporary license as an audiologist 
issued by the North Carolina Board of Examiners for Speech and Language Pathologists and 
Audiologists. Such individual is not required to serve as an apprentice, as set forth in G.S. 
93D-5, before applying for issuance of a license by examination, in accordance with the consent 
judgment entered in 80 CVS 8161 and filed in Wake County Superior Court Division, the case 
entitled Audiology Council of North Carolina, Inc., v. The North Carolina Hearing Aid Dealers 
and Fitters Board. 

History Note: Statutory Authority G.S. 93D-3(c); I SOB- 14; 
Eff. April 23, 1976: 
Amended Eff. May 1, 1988. 

.0302 BOARD 

History Note: Statutory Authority G.S. 93D-1; 
Eff. April 23, 1976: 
Repealed Eff May 1, 1988. 

.0303 LICENSE 

"License" shall mean the printed certificate, issued by the board, which an individual is required to 
obtain before engaging in the fitting and selling of hearing aids independent of a sponsor. 

History Note: Statutory Authority G.S. 93D-3(c); 
Eff April 23. 1976: 
Amended Eff May I, 1988. 

.0304 HEARING AID 

.0305 PRACTICE OF SELLING AND FITTING HEARING AIDS 

.0306 DISORDERS OF HEARING 

History Note: Statutory Authority G.S. 930-1; 93D-3; 
Eff April 23. 1976; 
Repealed Eff May /, 1988. 

.0307 REGISTERED APPRENTICE 

"Registered Apprentice" shall mean any individual who has duly made application to the board and 
has been issued an apprentice registration certificate which entitles such individual to fit and sell hearing 
aids under the supervision of a licensee approved by the board. 

History Note: Statutory Authority G.S. 93D-3 (c); 
Eff May 1, 1988. 

.0308 REGISTERED APPLICANT 

"Registered Applicant" shall mean any individual, including a registered apprentice, who has duly 
made application to the board for issuance of a license and for which one or more of the following 
conditions apply: 

(1) The individual is seeking admission to the next scheduled qualifying examination given by the 
board (license by examination); 

(2) The individual is seeking reciprocity pursuant to G.S. 93D-6; 

(3) The individual is seeking reinstatement of an expired license as set forth in G.S. 93D-11; or 

(4) The individual is seeking reissuance of a suspended license in accordance with the provisions of 
G.S. 93D-13. 

History Note: Statutory Authority G.S. 93D-3 (c); 
Eff May 1, 1988. 



S3 NOR TH CAROLINA REGIS TER 



FINAL RULES 



.0309 DULY MADE APPLICATION 

"Duly made application" shall mean that the completed application form, including all required doc- 
uments, photographs, and fees, and any supplemental information requested by the board, is in the 
hands of the executive secretary of the board. 

History Note: Statutory Authority G.S. 93D-3 (c); 
Eff. May I, 1988. 

.0310 ONE FULL YEAR OF APPRENTICESHIP 

"One full year of apprenticeship" shall mean that an individual, who is not an Audiologist and does 
not hold a masters degree in Audiology, has held a valid apprentice registration certificate for a period 
of 365 calendar days, has engaged in fitting and selling hearing aids for a minimum of 30 clock hours 
per week for a period of 50 weeks, and has received a minimum of 750 clock hours of direct supervision 
from a licensee approved by the board. The maximum time span allowed for completing the 365 cal- 
endar day requirement shall not exceed 24 consecutive months from the date of issuance of the initial 
apprentice registration certificate. 

History Note: Statutory Authority G.S. 93D-3 (c); 
Eff. May I, 1988. 

.031 1 DIRECT SUPERVISION 

"Direct supervision" shall mean the provision of general direction and control, including immediate 
personal on-site inspection and evaluation of work constituting the fitting and selling of hearing aids, 
as well as the provision of consultation and instruction. 

History Note: Statutory Authority G.S. 93D-3 (c); 
Eff May 1. 1988. 

.0312 AUDIOMETER 

"Audiometer" shall mean an electronic device, used for air conduction testing, bone conduction test- 
ing, and for obtaining speech audiometry results, which contains a masking circuit, at least one VU 
meter, and capability of sound field output. 

History Note: Statutory Authority G.S. 93D-3 (c); 
Eff May I, 1988. 

SUBCHAPTER 22B - RULE MAKING PROCEDURES 

SECTION .0100 - PETITIONS FOR RULE MAKING 

.0101 PETITIONS 

In accordance with G.S. 150B-16, any person desiring the adoption, amendment or repeal of a rule 
by the board shall submit a petition to the board containing the following information: 

(1) Name of board; 

(2) A draft of the proposed rule; 

(3) Reasons for the adoption, amendment or repeal; 

(4) Data supporting the proposed rule; 

(5) The effect of the proposal on existing rules; 

(6) Effects of the proposed rule on persons licensed under Chapter 93D of the General Statutes of 
North Carolina; 

(7) Names (including addresses if known) of those most likely to be aifected by the rule; and 

(8) Name(s) and address(es) of petitioner(s). 

History Note: Statutory Authority G.S. 93D-3(c); I50B-12; I50B-16; 
Eff April 23. 1976: 
Amended Eff May I, 1988. 

.0102 CONTENTS OF PETITIONS 
.0103 AMENDMENT OR REPEAL 
.0104 CONTENTS OF PETITIONS 



NOR TH CA R OLINA REGIS TER S4 



FINAL RULES 



.0105 GRANTING OR DENYING PETITIONS 
.0106 RECOMMENDATION 
.0107 FINAL DECISION 

History Note: Statutory Authority G.S. 93D-3; I50B-I6; 
Eff. April 23. 1976; 
Repealed Eff. May I, 1988. 

SECTION .0200 - NOTICE 

.0201 NOTICE TO PARTIES 

.0202 MAILING LIST 

.0203 PUBLIC NOTICE 

.0204 INFORMATION REQUESTS 

History Note: Statutory Authority G.S. 93D-3; I50B-I2; I50B-I6; 
Eff April 23. 1976; 
Repealed Eff May I. 1988. 

SECTION .0300 - HEARINGS 

.0301 LOCATION OF HEARINGS 

History Note: Statutory Authority G.S. 93D-3; 1508-12; 
Eff April 23, 1976; 
Repealed Eff May 1. 1988. ' , 

.0302 COMMENTS 

In accordance with G.S. 150B-12 and 150B-16, the record of hearing will be open for receipt of written 
comments for 30 consecutive days prior to the date of the public rule making hearing. Any interested 
person may present written or oral comments relevant to the actions proposed at the public rule making 
hearing or may deliver written comments to the board office no later than 10:00 a.m. on the day of the 
hearing. Any person planning to make oral comments is encouraged to submit a written copy of the 
presentation at or before the time of the public hearing. 

History Note: Statutory Authority G.S. 93D-3(c); 150B-12; 150B-16; 
Eff. April 23. 1976; 
Amended Eff May 1. 1988. 

.0303 REQUEST FOR ORAL PRESENTATIONS 

.0304 ORAL PRESENTATION 

.0305 WRITTEN STATEMENT 

.0306 ACKNOWLEDGMENT 

History Note: Statutory Authority G.S. 93D-3; 150B-1I; 150B-12; 150B-I6; 
Eff April 23. 1976; 
Repealed Eff May 1, 1988. 

.0307 CONTROL OF HEARINGS 

The presiding officer at the hearing shall have complete control of the proceedings including the al- 
lotment of time for oral presentations. 

History Note: Statutory Authority G.S. 93D-3(c); 150B-12; 
Eff April 23. 1976; 
Amended Eff May 1, 1988. 

.0308 REQUEST FOR STATEMENT ON FINAL DECISION 
.0309 RECORDS 

History Note: Statutory .Authority G.S. 93D-3; 150B-11; I SOB- 12; 1 SOB- 16; 
Eff .April 23. 1976; 



85 NOR TH CA ROLINA REGIS TER 



FINAL RULES 



Repealed Eff. May I. 1988. 

SECTION .0400 - EMERGENCY RULES 

.0401 POWER TO ISSUE 

.0402 LENGTH OF EFFECTIVENESS 

History Note: Statutory Authority G.S. 93D-3; J50B-/3; 
Eff. April 23, 1976; 
Repealed Eff. May I, 1988. 

SECTION .0500 - DECLARATORY RULINGS 

.0501 REQUEST FOR DECLARATORY RULING 

Any person affected by a statute administered by the board or by a rule promulgated by the board 
may request a declaratory ruling as to the validity of a rule or as to the applicability to a given state of 
facts. All requests for declaratory rulings shall be in writing and shall contain the following information: 

(1) Name(s) and address(es) of petitioner(s); 

(2) Statute and/or rule to which the petition relates; and 

(3) Concise statement of facts and explanation of the manner in which the petitioner is injured, or 
thinks he may be injured, by the statute or rule as applied to him. 

History Note: Statutory Authority G.S. 93D-3(c); I50B-I7; 
Eff April 23. 1976; 
Amended Eff May I, 1988. 

.0502 CONTENTS OF REQUEST 

History Note: Statutory Authority G.S. 93D-3; I50B-I7; 
Eff April 23, 1976; 
Repealed Eff May I, 1988. 

.0503 REFUSAL TO ISSUE DECLARATORY RULING 

In accordance with G.S. 150B-17, the board may decline to issue a declaratory ruling if any of the 
following circumstances exist: 

(1) A declaratory ruling would be futile because circumstances have so changed since the promulga- 
tion of the rule that the rule no longer serves its original purpose; 

(2) A similar factual situation has been the basis of a contested case; 

(3) The factual situation at issue was sp>ecifically considered upon the adoption of the rule being 
questioned, as evidenced by the rule making record; 

(4) The subject matter of the requested declaratory ruling is involved in a lawsuit pending in a court 
of this state or a federal court; or 

(5) Failure to comply with the requirements contained in Rule .0501 of this Section. 

History Note: Statutory Authority G.S. 93D-3(c); I50B-17; 
Eff April 23, 1976; 
Amended Eff May I, 1988. 

.0504 ISSUANCE OF DECLARATORY RULING 

.0505 PROCEDURE 

.0506 VALIDITY OF RULE 

.0507 CIRCUMSTANCES 

History Note: Statutory Authority G.S. 93D-3; 150B-I7; 
Eff April 23. 1976; 
Repealed Eff May I, 1988. 

SECTION .0600 - FEES 



NOR TH CA ROLINA REGIS TER 86 



FINAL RULES 



.0601 FEESCHEDLLE 
.0602 AMOUNT 



History Note: Statutory Authority G.S. 12-3.1; 93D-3; 
Eff. April 23, 1976; 
Repealed Eff. May I, 1988. 



SUBCHAPTER 22C - CONTESTED CASES 



SECTION .0100 - GENERAL RULES 



.0101 ADMINISTRATIVE HEARINGS PROCEDURES 

(a) The following hearing division rules promulgated by the Office of Administrative Hearings, cod- 
ified as Title 26, Chapter 3 of the North Carolina Administrative Code, effective August 1, 1986 and 



as amended through January 1, 
the board: 



1988, are hereby adopted by reference to apply to contested cases of 



(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 
(10) 

(11) 
(12) 
(13) 
(14) 
(15) 
(16) 
(17) 
(18) 
(19) 
(20) 
(21) 
(22) 
(23) 
(24) 
(25) 



26 NCAC 3 
26 NCAC 3 
26 NCAC 3 
26 NCAC 3 
26 NCAC 3 
26 NCAC 
26 NCAC 
26 NCAC 
26 NCAC 
26 NCAC 
26 NCAC 
26 NCAC 
26 NCAC 
26 NCAC 
26 NCAC 
26 NCAC 
26 NCAC 
26 NCAC 
26 NCAC 
26 NCAC 
26 NCAC 
26 NCAC 
26 NCAC 
26 NCAC 
26 NCAC 



.0001; 
.0002; 
.0004; 
.0005; 
.0006; 
.0007; 
.0008; 
.0010; 
.0011; 
.0012 
.0013 
.0014 
.0015 
.0016 
.0017 
.0018 
.0019 
.0020 
.0021 
.0022 
.0024 
.0026 
.0027 
.0028 
.0029. 



and 



(b) The hearing division rules cited in Paragraph (a) of this Rule are adopted in accordance with G.S. 
150B-14(b). 

History Note: Statutory Authority G.S. 93D-3(c); I50B-14; I50B-38(h); 
Eff April 23. 1976; 
Amended Eff May I. 1988. 

.0102 HEARINGS 



History Note: Statutory Authority G.S. 93D-3; I50B-38; 
Eff April 23. 1976; 
Repealed Eff Mav I. 1988. 



SECTION .0200 - REQUEST FOR A HEARING 



.0201 REQUEST 

.0202 PREREQUISITES 

.0203 WRITPEN REQUEST 



87 



NORTH CAROLINA REGISTER 



FINAL RULES 



.0204 CONTENTS OF REQUEST 
.0205 ACKNOWLEDGMENT 

History Note: Statutory Authority G.S. 93D-3; 150B-38; 
Eff. April 23, 1976; 
Repealed Eff. May I, 1988. 

SECTION .0300 - THE GRANTING OF HEARING REQUESTS 

.0301 GRANTING A HEARING 

.0302 CRITERIA 

.0303 ISSUANCE 

.0304 APPROVAL OF REQUEST 



History Note: Statutory Authority G.S. 93D-3; I50B-38; 
Eff April 23, 1976; 
Repealed Eff May I, 1988. 

SECTION .0400 - WAIVER 

.0401 FAILURE TO NOTIFY 
.0402 FAILURE TO APPEAR 

History Note: Statutory Authority G.S. 93D-3; I50B-38; 1 503-40; 
Eff April 23, 1976; 
Repealed Eff May I, 1988. 

SECTION .0500 - NOTICE 

.0501 REASONABLE NOTICE 

.0502 NOTICE AND HEARING 

.0503 ADDITIONAL INFORMATION ON NOTICES AND HEARINGS 

.0504 WRITTEN ANSWERS TO NOTICE 

History Note: Statutory Authority G.S. 93D-3; I50B-38; 
Eff April 23. 1976; 
Repealed Eff May I, 1988. 

SECTION .0600 - WHO SHALL HEAR CONTESTED CASES 

.0601 HEARING OFFICERS 
.0602 APPOINTMENT 

History Note: Statutory Authority G.S. 93D-3; J50B-40; 
Eff April 23, 1976; 
Repealed Eff May I, 1988. 

SECTION .0700 - PLACE OF HEARING 

.0701 LOCATION 

.0702 ALTERNATIVE LOCATIONS 

History Note: Statutory Authority G.S. 93D-3; I50B-38; 
Eff April 23, 1976; 
Repealed Eff May I, 1988. 

SECTION .0800 - INTERVENTION 

.0801 REQUIREMENTS 
.0802 PERMISSIVE INTERVENTION 
.0803 DISCRETIONARY INTERVENTION 
.0804 ADVISABILITY 



NOR TH CAROLINA REGIS TER S8 



FINAL RULES 



.0805 WRITTEN PETITION 

.0806 PETITION FOR INTERVENTION 

.0807 ALLOWANCE 

.0808 DENIAL 

History Note: Statutory Authority G.S. 93D-3; 1508-14; 1508-38; 
Eff. April 23. 1976; 
Repealed Eff. May I. 1988. 



SECTION .0900 - HEARING OFFICERS 

.0901 HEARING OFFICER 
.0902 CONDUCT 

History Note: Statutory Authority G.S. 93D-3; 1508-40; 
Eff April 23, 1976; 
Repealed Eff May I. 1988. 

.0903 ALLEGED BIAS OF BOARD MEMBER 

(a) If any party in a contested case reasonably believes that a member of the board involved in the 
hearing is personally biased or otherwise unable to participate in ruling on the issues raised in the 
hearing in an impartial manner, such party may file with the board a sworn notarized affidavit stating 
the specific reasons and facts for such belief. An affidavit will be considered timely if filed before 
commencement of the hearing. Any other affidavit may be found timely provided it is filed at the first 
opportunity after the party becomes aware of facts which give rise to a reasonable belief that any board 
member involved in the hearing may be biased. 

(b) The remaining board members shall decide whether to disqualify the person being challenged by 
the following procedure: 

(1) The person whose disqualification is to be determined will not participate in the decision but 
may be called upon to furnish information to the remaining members of the hearing board; 

(2) The president of the North Carolina State Hearing Aid Dealers and Fitters Board may appoint 
a member of the board or the executive secretary to investigate the allegations of the affidavit; 

(3) If appointed, the investigator shall report his fmdings and recommendations to the remainder 
of the members of the hearing board who will then decide whether to disqualify the challenged 
individual; and 

(4) A record of the proceedings and the reasons for decisions reached will be maintained as part of 
the contested case record. 

(c) A board member shall refrain from participating in a contested case if at any time he deems 
himself disqualified for any reason. 

History Note: Statutory Authority G.S. 93D-3(c); I50B-38(h); 
Eff April 23, 1976; 
Amended Eff May I, 1988. 

.0904 BIAS CLAIMED BY PARTY 

.0905 AFFIDAVIT OF DISQUALIFICATION 

.0906 FILING AFFIDAVIT 

.0907 DISQUALIFICATION 

.0908 NEW HEARING 

.0909 DISQUALIFICATION OF ENTIRE BOARD 

.0910 DETERMINATION TO CONTINUE 

.0911 RECORDS 

History Note: Statutory Authority G.S. 93D-3; 1508-40; 
Eff April 23, 1976; 
Repealed Eff May 1. 1988. 

SUBCHAPTER 22D - CONDUCT OF THE CONTESTED CASE 

SECTION .0100 - FAILURE TO APPEAR 



89 NORTH CAROLINA REGISTER 



FINAL RULES 



.0101 PROCEEDING WITHOUT PARTY 

.0102 ALTERNATIVES OF HEARING OFFICER 

.0103 CONTINUANCES 

.0104 PETITION TO REOPEN 

.0105 CRITERIA FOR REOPENING A CASE 

History Note: Statutory Authority G.S. 93D-3; 1508-14; J50B-38; 
Eff. April 23, 1976; 
Repealed Eff. May I. 1988. 

SECTION .0200 - PREHEARING CONFERENCE 

.0201 DISCRETION TO HOLD PREHEARING CONFERENCE 

.0202 PURPOSES 

.0203 NATURE OF PREHEARING CONFERENCE 

.0204 NOTICE OF PREHEARING CONFERENCE 

.0205 SIMPLIFICATION OF ISSUES 

History Note: Statutory Authority G.S. 93D-3; I50B-14; I50B-38; 
Eff April 23, 1976; 
Repealed Eff May I, 1988. 

SECTION .0300 - SUBPOENAS 

.0301 AUTHORITY TO ISSUE 

.0302 ISSUANCE 

.0303 SERVICE OF SUBPOENAS 

.0304 UNREASONABLE SUBPOENAS 

.0305 OBJECTIONS 

.0306 STATEMENT OF REASONS 

.0307 SERVICE OF OBJECTIONS 

.0308 RESPONSES TO OBJECTIONS 

.0309 HEARINGS ON SUBPOENA CHALLENGES 

.0310 RULINGS 

History Note: Statutory Authority G.S. 93D-3; 1508-14; 1508-39; 
Eff April 23, 1976; 
Repealed Eff May I, 1988. 

SECTION .0400 - DISCOVERY 

.0401 DISCOVERY OF INFORMATION 

.0402 FAILURE TO SUBMIT TO DISCOVERY 

History Note: Statutory Authority G.S. 93D-3; 1508-14; 1508-39; 
Eff April 23, 1976; 
Repealed Eff May 1, 1988. 

SECTION .0500 - DEPOSITIONS 

.0501 USE OF DEPOSITIONS 

.0502 PROCEDURE FOR TAKING A DEPOSITION 

.0503 RULINGS ON DEPOSITIONS 

History Note: Statutory Authority G.S. 93D-3; 1508-14; 1508-39; 
Eff April 23, 1976; 
Repealed Eff May 1, 1988. 

SUBCHAPTER 22E - DECISION IN CONTESTED CASES 

SECTION .0100 - PROPOSALS FOR DECISIONS 



NORTH CAROLINA REGISTER 90 



FINAL RULES 



.0101 HEARING OFUCKRS 

.0102 F'ROPOSAL FOR DFXISION 

.0103 EXCEPTIONS 

History Note: Statutory Authority G.S. 93D-3; I SOB- 14; J50B-38; 

Eff. April 23, 1976: 
Repealed Eff. May I, 1988. 

SECTION .0200 - OBJECTIONS TO BOARD DECISIONS 

.0201 FORM 

.0202 RECORDS 

.0203 SLBSTANTIAI. PREJLDICE 

.0204 ORAL ARGUMENTS 

.0205 NOTICE 

History S'ote: Statutory Authority G.S. 12-3.1; 93D-3; 1503-14; 1508-38; 
Eff. April 23, 1976; 
Repealed Eff May 1, 1988. 

SUBCHAPTER 22F - GENERAL EXAMINATION AND LICENSE PROVISIONS 

.0001 TIME OF EXAMINATIONS 

The board shall hold the qualilVing examination as set forth in G.S. 93D-8 on the first Saturday in 
May of each year and shall hold an additional examination on the first Saturday in November of each 
year provided that at least four individuals have duly made application for issuance of a license and that 
the filing for admission to the examination was timely. 

History Note: Statutory Authority G.S. 93D-3(c): 93D-8; 
Eff. April 23, 1976: 
Amended Eff May /, 1988. 

.0002 PLACE OF EXAMINATIONS 

History Note: Statutory Authority G.S. 93D-3; 93D-8; 
Eff April 23, 1976; 
Repealed Eff May 1, 1988. 

.0003 SUBMISSION OF APPLICATIONS AND FEES 

(a) A duly made application for issuance or renewal of an apprentice registration certificate shall be 
submitted to the executive secretary of the board no later than ten working days after the date that any 
of the following conditions exist: 

(1) Whenever a registered apprentice is separated from his sponsor for any reason and such indi- 
vidual wishes to obtain a new certificate to replace the invalidated certificate; 

(2) Whenever a registered apprentice is notified by the executive secretary of the board that he failed 
to pass the qualifying examination and such individual wishes to renew his certificate; 

(3) Whenever the executive secretary of the board notifies the individual that his apprentice regis- 
tration certificate has been invalidated for any reason and such individual wishes to obtain a new 
certificate to replace the invalidated certificate; and 

(4) Whenever an Audiologist duly makes application for issuance of a license by examination and 
that individual elects to become a registered apprentice in order to engage in the fitting and 
selling of hearing aids, under the supervision of a licensee approved by the board, while waiting 
to take the ne.xt scheduled qualifying examination. 

(b) A registered apprentice who holds a masters degree in Audiology and is not an Audiologist, as 
dcfmed in 21 NCAC 22A .0301 (2), may first apply for issuance of a license by examination any time 
after that individual has completed 250 clock hours of supervision by a licensee appro\ed by the board. 
I lowever, no later than ten working days after any registered apprentice who is not an Audiologist has 
held a valid apprentice registration certificate for 365 calendar days, the apprentice shall submit a duly 
made application for issuance of a license by examination and shall take the next scheduled qualifying 



91 NOR TH CAROLINA REGIS TER 



FINAL RULES 



examination. All registered apprentices shall reapply for a license by examination, within the time 
prescribed in Paragraph (c) of this Rule, each time they take and fail to pass the qualifying examination. 

(c) Whenever a registered applicant is required to take the qualifying examination as a condition for 
issuance of a license or reissuance of a suspended license, the duly made application shall be considered 
by the board to be timely if it is in the hands of the executive secretary no later than 30 consecutive 
days prior to the examination date. The board shall have the right to refuse any person admission to 
the qualifying examination if such individual has not duly made application for issuance or reissuance 
of a license, has not attended an examination preparation workshop as set forth in 21 NCAC 22F .0014 
(b), or has not made a timely fding. 

(d) All fees shall be paid to the executive secretary by a bank check, certified check, or money order 
made payable to N.C. Hearing Aid Dealers and Fitters Board. 

History Note: Statutory Authority G.S. 93D-3(cJ; 93D-9; 

Eff. April 23. 1976; 
Amended Eff. May 1, 19S8. 

.0004 QLALIFICATIONS 

(a) The board may require such supplemental information to all applications for issuance and renewal 
of a license or an apprentice registration certificate as it deems necessary to determine the facts gov- 
erning the qualifications of each licensee, registered applicant, and registered apprentice, as set forth in 
these Rules and in Chapter 93D of the General Statutes of North Carolina. Supplemental information 
may include, but is not necessarily limited to, letters of recommendation, affidavits, photographs, offi- 
cial transcripts, and, if warranted, personal appearances before the board. 

(b) Any registered apprentice who holds a masters degree in Audiology and any Audiologist who 
elects to be a registered apprentice shall, prior to the next scheduled qualifying examination, submit to 
250 clock hours of direct super\'ision by a licensee approved by the board, whenever such apprentice 
takes and fails to pass the qualifying examination. 

(c) Any registered apprentice who is not an Audiologist and does not hold a masters degree in Au- 
diology shall, for each week prior to the next scheduled qualifying examination, submit to 15 clock 
hours of direct super\'ision by a licensee approved by the board, whenever such apprentice takes and 
fails to pass the qualifying examination. 

(d) Aji Audiologist who engages in the fitting and selling of hearing aids within the ofrice(s) of an 
otolaryngologist, solely while serving as an employee who works a minimum of 30 clock hours per 
week for such otolaryngologist and who is under the direct supervision of such otolaryngologist, shall 
not be subject to the provisions of 21 NCAC 22 or Chapter 93D of the General Statutes of North 
Carolina. 

History Note: Statutory Authority G.S. 93D-3(c); 93D-5; 93D-9; 
Eff April 23, 1976; 
Amended Eff May I, 1988. 

.0005 PASSING GRADES 

The board shall annually review the contents and outcome of the previous qualifying examinations 
and shall determine the minimum performance criteria required for passing the examination. In ac- 
cordance with G.S. 93B-8 (a), each registered applicant shall be informed in writing of the requirements 
for passing the examination prior to his taking the examination. 

History Note: Statutory Authority G.S. 938-8; 93D-3(c); 
Eff April 23, 1976; 
Amended Eff May I, 1988. 

.0006 GRADING 

History Note: Statutory Authority G.S. 93D-3; 
Eff April 23, 1976; 
Repealed Eff May I, 1988. 

.0007 COMMLNICATION OF RESULTS OF EXAMINATIONS 



NOR TH CA ROLINA REGIS TER 92 



FINAL RULES 



(a) Pursuant to G.S. 93B-8 (b), each registered applicant shall be identified by number, rather than 
by name, for purpose of the examination. 

(b) The executive secretary of the board shall issue written notification to each registered applicant, 
concerning only his own performance on the qualifying examination, no later than 14 consecutive days 
after the results of the examination are in the hands of the executive secretary. 

History Note: Statutory Authority G.S. 93B-8; 93D-3(c); 
Eff. .April 23. 1976; 
Amended Eff. May I, 1988. 

.0008 REVIEW OF EXAMINATION 

As set forth in G.S. 93B-8 (c), each registered applicant who takes and does not pass the qualifying 
examination shall be granted an opportunity to review his examination in the presence of a represen- 
tative of the board, upon written request from the applicant. Such written request shall be in the hands 
of the executive secretary of the board no later than 30 consecutive days after the written notification 
of the examination results was issued by the executive secretary. 

Historv Note: Statutory Authority G.S. 93B-8; 93D-3(c): 
Eff April 23, 1976; 
Amended Eff May I. 1988. 

.0009 FEES 

History Sole: Statutory Authority G.S. 12-3. 1; 93D-3; 
Eff April 23, 1976; 
Repealed Eff. May 1. 1988. 

.0010 REFUNDS 

Application fees shall not be refunded for any reason. 

Histon' Note: Statutory Authority G.S. 93D-3(c); 
Eff April 23, 1976; 
Amended Eff May I. 1988. 

.0011 RECIPROCITY 
.0012 LICENSES 

Histon,^ Note: Statutory Authority G.S. 93D-3; 93D-5; 93D-6; 
Eff April 23, 1976: 
Repealed Eff May I, 1988. 

.0013 APPRENTICESHIP REQl IREMENTS 

(a) Pursuant to G.S. 93D-9, each individual who duly makes apphcation for issuance or renewal of 
an apprentice registration certificate shall submit a plan, using the form provided by the board, for 
completing the supervision requirement for the apprenticeship. The registered apprentice shall submit 
a report of the apprenticeship experience, using the form provided by the board, no later than ten 
working days after the date that any of the following conditions exist: 

(1) The apprentice and his sponsor are separated for any reason and thus causing the apprentice 
registration certificate to become invalidated; 

(2) The apprentice, who is not an Audiologist, has held a valid apprentice registration certificate for 
365 calendar days; 

(3) The apprentice, who holds a masters degree in Audiolog\' and is not an Audiologist, has com- 
pleted 250 clock hours of supervision, prior to first taking the qualifying examination; 

(4) The apprentice has been notitied by the executive secretary of the board that he failed the qual- 
ifying examination and the individual is reapplying for issuance of a license by examination; 

(5) The apprentice, who has renewed his apprentice registration certificate after failing to pass the 
qualifying examination, has been notified by the executive secretary' of the board that he has 
passed the subsequent qualifying examination; or 

(6) The board has issued a written request to the registered apprentice for submission of a report, 
in order to determine fulfillment of the apprentice experience requirements. 



93 NOR TH CAROLINA REGIS TER 



FINAL RULES 



(b) The initial apprentice registration certificate issued to any person who is not an Audiologist, and 
any subsequently issued replacements for an invalidated certificate, shall expire after the apprentice has 
held a valid apprentice registration certificate for a total of 365 calendar days. Upon receipt of a duly 
made application for issuance of a license by examination, the board shall, when necessary, extend the 
certificate, at no charge to the registered apprentice, until 30 consecutive days after the results of the 
next scheduled qualifying examination are in the hands of the executive secretary of the board. The 
initial apprentice registration certificate, and any replacements which are issued to an Audiologist prior 
to his first taking the qualifying examination, shall expire 30 consecutive days after the results of the 
next scheduled qualifying examination are in the hands of the executive secretary of the board. 

(c) Whenever any registered apprentice takes and fails to pass the qualifying examination, the indi- 
vidual shall duly make application for issuance of a renewal certificate which shall expire 30 consecutive 
days after the results of the next scheduled qualifying examination are in the hands of the executive 
secretary of the board. 

(d) All registered apprentices shall comply with the rules and regulations, including the code of ethics, 
promulgated by the board and with the provisions set forth in Chapter 93D of the General Statutes of 
North Carolina. Failure to comply shall be sufficient grounds to invalidate an apprentice registration 
certificate, to deny future applications for issuance of an apprentice registration certificate, to deny re- 
newal of an apprentice registration certificate, or to deny, suspend or revoke a license after proper notice 
and hearing. 

History Note: Statutory Authority G.S. 93D-3(c); 93D-9; 
Eff. April 23, 1976; 
Amended Eff. May I, 1988; November 4, 1980. 

.0014 TRAINING AND SUPERVISION 

(a) Each registered apprentice, excluding those Audiologists who elect to be a registered apprentice 
while waiting to take the qualifying examination for the first time, shall submit to direct supervision 
by a licensee who is approved by the board and who shall be responsible for the apprentice's training 
and supervision in the following areas; 

(1) /Vnatomy, physiology, and pathology of the auditory mechanism; 

(2) Measurement techniques and test interpretation for assessment of hearing impairment and 
hearing handicap; 

(3) Hearing aid technology including instrument circuitry and acoustic performance data; 

(4) Design, selection, and modification of earmold/shell coupling systems; 

(5) Hearing aid selection procedures, and fitting and adjustment techniques; 

(6) Post-delivery care including hearing aid orientation and counseling techniques, and hearing aid 
servicing; 

(7) Ethical conduct and regulatory issues concerning the fitting and selling of hearing aids; and 

(8) Other related topics that the sponsor or apprentice deem necessary. 

(b) Before taking the qualifying examination for the first time, each registered apprentice who is not 
an Audiologist shall attend an examination preparation workshop, approved or sponsored by the 
board, which consists of one 3-day session. The workshop dates wiU be scheduled in conjunction with 
the dates for the qualifying examinations. Information concerning the scheduled times, dates, and 
topics for each workshop may be obtained from the executive secretary of the board. Written notice 
of intent to attend any or all of the daily sessions must be in the hands of the executive secretary of the 
board at least three consecutive days prior to the starting date of each workshop. 

(c) The board shall have the right to refuse any person admission to the workshop sessions if the 
individual is not a registered apprentice or a registered applicant, or if timely notification of intent to 
attend was not made in accordance with Paragraph (b) of this Rule. 

History Note: Statutory Authority G.S. 93D-3(c); 93D-5; 
Eff April 23, 1976; 
Amended Eff May I. 1988; November 4, 1980. 

.0015 SPONSOR'S DUTIES 

(a) Each sponsor of a registered apprentice shall supervise, instruct, and train his apprentice in ac- 
cordance with the rules and regulations promulgated by the board, including the code of ethics, and 
with Chapter 93D of the General Statutes of North Carolina. 



NOR TH CAROLINA REGIS TER 94 



FINAL RULES 



(b) Pursuant to G.S. 93D-9 (c), the sponsor shall assist his apprentice in submitting all required plans 
for completing the super\ision requirements for the apprenticeship and all required reports of the ap- 
prenticeship experience. 

(c) In accepting an apprentice, including any individual who is an Audiologist or holds a masters 
degree in Audiology, the sponsor shall be responsible for the conduct of such registered apprentice while 
that individual is engaged in the fitting and selling of hearing aids and shall acquaint his apprentice with 
all federal and state regulations concerning the fitting and selling of hearing aids. 

(d) In accepting any apprentice who has taken and failed to pass the qualifying examination, the 
sponsor shaU provide training and direct supervision in accordance with this Rule and 21 NCAC 22F 
.(1004. 

History Note: Statutory Authority G.S. 93D-3(c); 93D-9; 
Eff. April 23, 1976; 
Amended Eff. May I, 1988; November 4, 1980. 

.0016 SEP.ARATION OF APPRENTICE AND SPONSOR 

(a) In any case where a registered apprentice is separated from his sponsor for any reason, the fol- 
lowing procedures shall apply: 

(1) The apprentice shall return the original and all copies of his invalidated apprentice registration 
certificate, along with his pocket identification card which was issued by the board, to the exec- 
utive secretary of the board within ten working days after such separation; 

(2) The apprentice shall cease to fit and sell hearing aids until a new certificate is issued by the board; 

(3) The sponsor shall notify the executive secretary of the board, in writing, of any separation from 
his apprentice within ten working days after such separation; and 

(4) The sponsor shall assist the apprentice by returning to the executive secretary of the board, 
within ten working days after such separation, the original and aU copies of the apprentice's in- 
validated apprentice registration certificate that may be in the possession of the sponsor. 

(b) Failure to abide by the procedures stated in this Rule may result in denial of any future applica- 
tions for issuance of an apprentice registration certificate or a license, and may result in disciplinary 
action for the sponsor after proper notice and hearing. 

Histon' Note: Statutory Authority G.S. 93D-3(c); 93D-5; 
Eff April 23, 1976; 
Amended Eff May I, 1988. 

.0017 APPRENTICE TERMINATION 

History Note: Statutory Authority G.S. 93D-3; l50B-9(c); 
Eff April 23, 1976: 
Repealed Eff May f 1988. 

.0018 CHANGE OF ADDRESS 

It is the duty of all licensees, registered applicants, and registered apprentices to notify the executive 
secretary of the board, within ten working days, of any change in the business name(s) or the street 
address(es), within the State of North Carolina, of their place(s) of business or proposed place(s) of 
business. Failure to do so may result in disciplinar>' action after proper notice and hearing. 

History Note: Statutory Authority G.S. 93D-3(cJ; 93D-10; 
Eff April 23, 1976; 
Amended Eff May 1, 1988. 

.0019 SPONSORS' RESIDENCE 



History Note: Statutory Authority G.S. 93D-3; 
Eff. April 23, 1976; 
Repealed Eff May 1, 1988. 

.0020 CONTINUING EDLC.\TION 



95 NOR TH CAROLINA REGIS TER 



FINAL RULES 



Each licensee shall be required to obtain a specified number of Continuing Education Units, on an 
annual basis, as a requirement for license renewal. The duty of obtaining information regarding the 
number of required continuing education program clock hours of credit or the topic content categories 
applicable for credit, and for obtaining the forms, issued by the board, for requesting program approval 
and attendance verification is solely the responsibility of the licensee. Current requirements may be 
obtained from the executive secretary of the board and these requirements shall be reviewed aimually 
by the board. 

History Note: Statutory Authority G.S. 93D-3fc); 93D-II; 
Eff. April 23, 1976; 
Amended Eff. May I. 1988. 

SUBCHAPTER 22G - RENEWALS AND REGISTRATIONS 

.0001 ANNUAL RENEWAL OF CERTIFICATES 
.0002 FORFEITURE 

History Note: Statutory Authority G.S. 93D-3; 93D-II; 
Eff April 23, 1976; 
Repealed Eff May /, 1988. 

SUBCHAPTER 22H - REVOCATION OF LICENSES 

.0001 PETITION AND BOARD PROCEDURES 

.0002 PROCEDURE WHERE MEMBER OF BOARD INVOLVED 

History Note: Statutory Authority G.S. 93D-3; 93D-13; I SOB- 1 4; 150B-38; 
Eff April 23, 1976; 
Repealed Eff May I, 1988. 

SUBCHAPTER 221 - PROFESSIONAL AFFAIRS 

.0001 CLIENTS' INTEREST 

In order to serve the best interest of the client, all licensees and registered apprentices shall advise their 
clients to take the recommended actions as prescribed in 21 CFR 801 (effective August 15, 1977), 
Subparts 801.420 and 801.421, which are herein adopted by reference in accordance with G.S. 1 SOB- 14 

(b). 

History Note: Statutory Authority G.S. 93D-3(c); 1508-14; 
Eff April 23, 1976; 
Amended Eff May 1, 1988. 

.0002 PROFICIENCY 

History Note: Statutory Authority G.S. 93D-3; 
Eff April 23, 1976; 
Repealed Eff May I, 1988. 

.0003 VISUAL INSPECTION 

All licensees and registered apprentices shall use a suitable device having its own light source for visual 
inspection of the external auditory canal and the tympanic membrane, in order to fulfill the require- 
ments of 21 CFR 801 (effective August 15, 1977), Subpart 801.420 concerning the warning to hearing 
aid dispensers, which have been adopted by reference in Rule .0001 of this Subchapter. 

History Note: Statutory' Authority G.S. 93D-3(c); 
Eff April 23, 1976: 
Amended Eff May I, 1988. 

.0004 MEDICAL REFERRAL 

.0005 MEDICAL REFERRAL OF OTHER HEARING PROBLEMS 



NOR TH CAROLINA REGIS TER 96 



FINAL RULES 



History Note: Statutory Authority G.S. 93D-3; / SOB- 14; 
Eff. April 23, 1976; 
Repealed Eff. May 1. 1988. 

.0006 DISCLOSURE 

(a) In addition to the information required by G.S. 93D-7, all licensees and registered apprentices 
shall, by the time of delivery of the hearing aid(s), complete one or more written statements of sale 
containing the following: 

(1) The business name and street address, within the State of North Carolina, of at least one place 
of business of the seller; 

(2) The name of the person delivering the hearing aid(s) and the name of the person who sold the 
hearing aid(s); 

(3) The name of the purchasing party, if different from the name of the consumer; 

(4) The date of sale, if different from the date of delivery; 

(5) The model of the hearing aid(s); and 

(6) The total cost to the purchaser for all products and ser\ices. 

(b) A copy of all statements of sales shall be retained for a period of three calendar years from the 
date of deliverv' of the hearing aid(s). 



Histori- .\ote: Statutory' Authority G.S. 93D-3(c); 
Eff. .April 23. 19-76; 
Amended Eff. May 1, 1988. 

.0007 .\LD10.METERS 

History .\ote: Statutory Authority G.S. 93D-3; 
Eff April 23, 1976; 
Repealed Eff .May 1, 1988. 

.0008 CALIBRATION CHECK FOR AUDIOMETERS 

(a) .AH audiometers used in the fitting and selling of hearing aids shall have an aimual calibration check 
and be recalibrated, if necessajy", in accordance with the standards cited in Rule .0010 of this Sub- 
chapter. 

(b) WTienever any individual applies for issuance and renewal of a license or an apprentice registration 
certificate, the board shall require proof of audiometer calibration within the 12 consecutive months 
preceding such application. 

Histon- Sole: Statutory Authority G.S. 93D-3(cJ; 
Eff April 23, 1976; 
Amended Eff May 1, 1988. 

.0009 APPRO\ AL OF CALIBR.\TERS 

The board shall not accept calibration records from any individual or calibration center unless such 
individual or center has been approved by the board prior to cahbration. Manufacturers of audiometers 
may calibrate without prior approval of the board. A list of authorized individuals and centers, as well 
as the form used to apply to become an authorized calibrater, may be obtained from the executive 
secretary of the board. 

History Xote: Statutory Authority G.S. 93D-3(c); 
Eff April 23, 1976; 
.Amended Eff May 1, 1988. 

.0010 ST.\NDARDS FOR AUDIOMETERS 

.All audiometers used for fitting and selling hearing aids shall be in calibration according to the stand- 
ards contained in the ANSI S3. 6- 1969 specifications for audiometers and which are herein adopted by 
reference, in accordance with G.S. 150B-14 (b). 

History .\ote: Statutory Authority G.S. 93D-3(c); 150B-14; 



NORTH CAROLINA REGISTER 



FINAL RULES 



Eff. April 23, 1976: 
Amended Eff. May I, 1988. 

.001 1 SYMBOLS FOR AUDIOGRAMS 

(a) The board recommends that the following standard symbols be used in recording hearing thresh- 
olds: 

(1) Right ear unmasked will be denoted as follows: 

(A) air — a small circle; 

(B) bone -- a 45 degree angle pointing left. 

(2) Left ear unmasked will be denoted as follows: 

(A) air -- a small "x"; 

(B) bone -- a 45 degree angle pointing right. 

(3) Right ear masked will be denoted as follows: 

(A) air -- a small triangle; 

(B) bone — a single bracket open on the right. 

(4) Left ear masked will be denoted as follows: 

(A) air -- a small square; 

(B) bone — a single bracket open on the left. 

(5) No response for the right ear at the maximum output of the audiometer will be denoted by a 
small arrow pointing southwest which is attached to the corresponding urmiasked and masked 
symbols. 

(6) No response for the left ear at the maximum output of the audiometer will be denoted by a small 
arrow pointing southeast which is attached to the corresponding unmasked and masked sym- 
bols. 

(7) An asterisk will denote the contralateral ear masked. 

(8) A capital "S" will denote sound field responses. 

(b) In all cases where the symbols listed in this Rule are not used, a symbol key shall be included 
on the audiogram form. 

History Note: Statutory Authority G.S. 93D-3(c); 
Eff April 23, 1976: 
Amended Eff May I, 1988. 

.0012 DISPLAY OF PRINTED CERTIFICATES 

Pursuant to G.S. 93D-I2, all licensees and registered apprentices shall have a street address, located 
within the State of North Carolina, at which they display their hcense or apprentice registration certif- 
icate. In addition, all licensees and registered apprentices shall carry with them a copy of their license 
or apprentice registration certificate, or their pocket identification card issued by the board, when doing 
business which takes them outside of their offices. 

History Note: Statutory Authority G.S. 93D-3(c): 93D-I2: 
Eff April 23, 1976: 
Amended Eff May I, 1988. 

.0013 LOCATION FOR PROVISION OF SERVICE 

(a) Service after sale is a consumer's right and all licensees and registered apprentices shall furnish to 
each hearing aid purchaser, in writing, at least one business address within the State of North Carolina 
where service and fulfillment of guarantees can be obtained. This information shall be given to the 
purchaser by the time of deUvery of the hearing aid(s). 

(b) A post office box shall not suffice for the business address referred to in Paragraph (a) of this Rule 
and the address of any hearing aid manufacturer, distributor, or repair facility, located outside the State 
of North Carolina, shall not suffice for this required address. In addition, the address of any hearing 
aid manufacturer or repair facility within the State of North Carolina shall not suffice for the referenced 
address, unless the licensee or registered apprentice who is the seller of the hearing aid(s) is also the 
owner or an employee of such facihty. 



History Note: Statutory Authority G.S. 93D-3(c): 
Eff April 23, 1976: 
Amended Eff May /, 1988. 



NORTH CAROLINA REGISTER 98 



FINAL RULES 



SLBCHAPTER 22J - CODE OF ETHICS 



.0001 FRALD 



History S'ote: Statutory Authority G.S. 93D-/3; 
Eff. April 23, 1976; 
Repealed Eff. May I, 1988. 

.0002 EMPLOYMENT OF UNQUALIFIED PERSONS 

It shall be unethical to employ directly or indirectly any unqualified person to {perform in a capacity 
regulated by Chapter 93D of the General Statutes of North Carolina. 

History Xote: Statutory: Authority G.S. 93D-3(cJ; 
Eff .April 23, 1976; 
.Amended Eff May I, 1988. 

.0003 AD\ERTIS1NG 

It shall be unethical to perform an\ of the folio wing acts: 

(!) To use or cause or prompt the use of any advertising matter, promotional literature, testimonial, 

guarantee, warranty, label, brand, insignia, or any other representation however disseminated or 

published which is misleading, deceiving, or untruthful; 

(2) To advertise a particular model, type, or kind of hearing aid for sale when purchasers or pro- 
spective purchasers responding to such advertisements cannot have it demonstrated to them or 
cannot purchase the advertised model or kind from the licensee or registered apprentice, and the 
purpose of the advertisement is to obtain prospects for the sale of a different model, type, or kind 
of hearing aid than that ad\'ertised; 

(3) To advertise that a product is offered for sale at a special or reduced price, or words of similar 
meaning such as "sale price," when, within the past six months from the date of the advertisement, 
less than 50 percent of all sales of that specific model of the product were sold at a higher price; 

(4) To advertise hearing aids at a low price and thereafter attempt to encourage customers to purchase 
similar hearing aids which were not described and priced in such advertising; or 

(5) To advertise or disseminate any information which represents hearing aids as ha\ing a regular 
price or stated value, or words of similar meaning such as "list price," when, within the past six 
months from the date of the advertisement, less than 50 percent of all sales of that specific model 
of the product were sold at that price. 

Histor\: Xote: Statutory Authority G.S. 93D-3(c); 93D-!3(a); 
Eff April 23, 1976; 
.Amended Eff May }, 1988. 

.0004 USE OF LICENSE BY .\NOTHER 

History Xote: Statutory .Authoritv G.S. 93D-I3; 
Eff .April 23, 1976; 
Repealed Eff May I, 1988. 

.0005 DEF.\M.\TION OF COMPETITORS 

It shall be unethical to defame competitors by falsely imputing to them dishonorable conduct, inability 
to perform contracts, questioned credit standing or competency, or to falsely to disparage the products 
of competitors in any respect. 

History Xote: Statutory .Authority G.S. 93D-3fcJ; 
Eff .April 23. 1976: 
Amended Eff May I, 1988. 

.0006 DISPLAY OF PRODUCTS 

Histon Xote: Statutory .Authority G.S. 93D-13; 
Eff April 23. 1976; 



99 NOR TH CAROLINA REGIS TER 



FINAL RULES 



Repealed Eff. May I, 1988. 

.0007 PRICES 

It shall be unethical to quote prices of a competitor without disclosing that they may not be the actual 
current prices charged by the competitor. 

History Note: Statutory Authority G.S. 93D-3(c); 93D-I3(a); 
Eff. April 23, 1976; 
Amended Eff May I, 1988. 

.0008 USE OF TRADEMARKS 

It shall be unethical to imitate, copy, or otherwise simulate the trademarks, trade names, service marks, 
brands, or labels of competitors for the purpose of misleading or deceiving consumers. 

History Note: Statutory Authority G.S. 93D-3(c); 93D-/3(aJ; 
Eff April 23, 1976; 
Amended Eff May I, 1988. 

.0009 OBTAINING INFORMATION ABOUT COMPETITORS 

It shall be unethical to obtain information concerning the business of a competitor by bribery of an 
employee or agent of such competitor, by misrepresentations, or by any other unfair means. 

History Note: Statutory Authority G.S. 93D-3(c); 
Eff April 23, 1976; 
Amended Eff May I, 1988. 

.0010 INDUCEMENTS TO PURCHASE 

It shall be unethical to directly or indirectly give, offer to give, permit, or cause to be given money or 
an>thing of value to any person who advises another in a professional capacity, for the purpose of di- 
verting or influencing the freedom of choice of the consumer in the selection of a source for the fitting 
and seUing of hearing aids. 

History Note: Statutory Authority G.S. 93D-3(c); 
Eff April 23. 1976; 
Amended Eff May I, 1988. 

.001 1 MISREPRESENTATION OF EDUCATION 
.0012 MISREPRESENTATION OF PRODUCTS 
.0013 UNETHICAL BUSINESS PRACTICES 

History Note: Statutory Authority G.S. 93D-13; 
Eff April 23, 1976: 
Repealed Eff May I, 1988. 

.0014 FALSE OR CONCEALED INFORMATION 

It shall be unethical to make false statements or representations to the board or to willfully conceal 
information from the board in connection with the issuance, reinstatement, reissuance, replacement, 
or renewal of a hcense or an apprentice registration certificate, including information as to whether any 
registered apprentice has satisfied or complied with the apprenticeship requirements. 

History Note: Statutory Authority G.S. 93D-3(c); 93D-13(a); 
Eff May 1, 1988. ' 

SUBCHAPTER 22K - FORMS 

.0001 DESIGNATION 

The forms used by the North Carolina State Hearing Aid Dealers and Fitters Board shall be known 
by the following titles: 

(1) Application for License; 

(2) Application for Apprentice Registration Certificate; 



NOR TH CAROLINA REGIS TER 100 



FINAL RULES 



(3) Application for License Renewal; 

(4) F'lan for Completing the Supervision Requirements for the Apprenticeship; 

(5) Report of the Apprenticeship Experience; 

(6) Application for Approval of a Program for CEU Accreditation; 

(7) Report of Program Attendance for Issuance of CEU Credit; 

(8) Application to Become an Authorized Calibrater; and 

(9) Application for Replacement of a Valid Printed Certificate Due to Loss or Name Change. 

History Note: Statutory Authority G.S. 93D-3(c); 1508-11(1); 
Eff. April 23. 1976; 
Amended Eff. May I. 1988. 

.0002 APPLICATION FOR LICENSE 

The Application for License form shall be used by all registered applicants, as defmed in 21 NCAC 
22A .0308, who are seeking issuance of a license. 

History Note: Statutory Authority G.S. 93D-3(c); 
Eff April 23. 1976: 
Amended Eff May /, 1988. 

.0003 APPLICATION FOR APPRENTICE REGISTRATION CERTIFICATE 

The Application for Apprentice Registration Certificate form shall be used on each occasion that any 
individual is applying for issuance of an initial apprentice registration certificate, issuance of a new cer- 
tificate to replace an invalidated apprentice registration certificate, or issuance of a renewal certificate. 

History Note: Statutory Authority G.S. 93D-3(c); 
Eff April 23. 1976; 
Amended Eff May I. 1988. 

.0004 ACCESS TO FORMS 

The forms listed in 21 NCAC 22K .0001 may be obtained from the executive secretary of the board. 

History Note: Statutory Authority G.S. 93D-3(c); I50B-I1{I); 
Eff April 23, 1976; 
Amended Eff Mav I, 1988. 



101 NOR TH CA ROLINA REGIS TER 



LIST OF RULES AFFECTED 



NORTH CAROLINA ADMINISTRATIVE CODE 
EFFECTIVE: April 1, 1988 



AGENCY 

DEPARTMENT OF AGRICULTURE 

2 NCAC 43H .0003 

GOVERNOR'S OFFICE 



ACTION TAKEN 



Amended 



NCAC 2 Executive Order Number 68 
Eff. 03-11-88 

Executive Order Number 69 
Eff. 03-11-88 

Executive Order Mumber 70 
Eff. 03-11-88 

Executive Order Number 71 
Eff. 03-11-88 



DEPARTMENT OF HUMAN RESOURCES 



10 NCAC IB 


.0201 - 
.0206 


.0202 




.0208 - 


.0213 




.0215- 


.0216 




.0218- 


.0220 




.0222 - 


.0224 


I4C 


.1114 
.1117 




20A 


.0101 - 


.0102 




.0201 - 


.0203 




.0301 






.0303 






.0308 






.0312- 


.0317 




.0401 - 


.0405 


20B 


.0101 - 


.0108 


26G 


.0107 




26H 


.0102 
.0105 
.0302 




DEPARTMENT OF .UJSTICF 







12 NCAC 7D .0301 

DEPARTMENT OF CRIME CONTROL AND PUBLIC SAFETY 



14A 



NCAC 7 



.0101 
.0106 
.0201 
.0204 
.0301 
.0308 
.0401 
.0406 



.0105 
.0107 
.0203 
.0211 
.0307 
.0318 
.0405 
.0407 



Amended 

Repealed 

Repealed 

Repealed 

Repealed 

Repealed 

Amended 

Amended 

Amended 

Repealed 

Repealed 

Repealed 

Repealed 

Repealed 

Repealed 

Amended 

Adopted 

Amended 

Amended 

Amended 



Amended 



Repealed 
Adopted 
Repealed 
Adopted 
Repealed 
Adopted 
Repealed 
Adopted 



NORTH CAROLINA REGISTER 



102 



LIST OF RULES AFFECTED 



.0501 - .0503 
11 .0501 - .0506 



Repealed 
Adopted 



DKPAK IMFM OK NAI LKAL RESOURCES AND COMMUNITY DEVELOPMENT 



15 



NCAC lA 



70 



lOB 
15 



.0002 

,0005 - .0006 

.0008 



.0101 - 

.0201 - 

.0115 

.0104 

.0203 - 

.0301 - 

.0402 

.0501 

.0601 - 

.0701 

.0801 

.0803 

.0903 

.1002- .1003 



0105 
0202 



0204 
0302 



.0603 



Repealed 
Repealed 
Repealed 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 



BOARD OF CERTIFIED PUBLIC ACCOUNTANT EXAMINERS 



21 NCAC 8G .0408 

8K .0201 



Repealed 
Amended 



BOARD OF COSMETIC ART EXAMINERS 



21 NCAC 14A .0102 
.0104- 
.0201 - 
.0301 - 

14B .0101 - 
.0103- 
.0105 
.0107 
.0201 
.0202 - 
.0301 
.0302 
.0305 - 
.0308 - 
.0401 - 
.0501 
.0503 

14C .0101 
.0102 
.0103 
.0302 - 
.0501 - 
.0601 
.0701 - 
.0901 - 
.0903 - 
.0905 
.0906 - 
.0909 - 



,0105 
,0207 
0309 
0102 
0104 



0204 



0306 
0309 
0402 



0304 
0502 

0702 
0902 
0904 

0908 
0911 



Amended 

Amended 

Repealed 

Repealed 

Amended 

Repealed 

Amended 

Amended 

Amended 

Repealed 

Repealed 

Amended 

Amended 

Amended 

Repealed 

Amended 

Amended 

Amended 

Repealed 

Adopted 

Repealed 

Repealed 

.Amended 

Repealed 

Repealed 

Amended 

Repealed 

Amended 

Repealed 



lOi 



i\ORTH CAROLINA REGISTER 



LIST OF RULES AFFECTED 



14D 


.0101 




.0102 




.0103 -.0104 




.0201 - .0205 




.0301 




.0303 




.0304 




.0305 




.0309 - .0310 




.0401 - .0402 




.0501 - .0503 


14E 


.0101 - .0103 




.0201 - .0205 


14F 


.0001 




.0002 - .0003 




.0004 




.0006 




.0007 




.0009 




.0011 




.0012 




.0013 


14G 


.0002 




.0004 




.0005 




.0008 




.0012 




.0016 


14H 


.0009 - .0010 




.0012- .0013 


141 


.0101 




.0103- .0107 




.0109 


14J 


.0103- .0106 




.0204 - .0206 




.0302 - .0305 




.0402 - .0404 


14K 


.0002 


14L 


.0103 




.0204 - .0206 




.0209 


14M 


.0001 




.0005 




.0014- .0015 




.0016- .0017 


BOARD OF DENTAL KXAMIM.RS 


21 NCAC 16N 


.0308 




.0503 - .0504 




.0601 



Amended 

Repealed 

Amended 

Repealed 

Repealed 

Amended 

Repealed 

Amended 

Amended 

Repealed 

Repealed 

Repealed 

Repealed 

Amended 

Repealed 

Amended 

Repealed 

Amended 

Amended 

Repealed 

Amended 

Adopted 

Amended 

Amended 

Repealed 

Amended 

Amended 

Adopted 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Adopted 



Amended 
Amended 
Repealed 



BOARD OF EXAMINERS OF ELECTRICAL CONTRACTORS 



21 NCAC 18 .1606 

OFFICE OF ADMINISTRATIVE HEARINGS 



Amended 



26 



NCAC 2A .0602 



Amended 



NORTH CAROLINA REGISTER 



104 



NC AC INDEX 



TITLE/MAJOR DIMSIONS OF THE NORTH CAROLINA ADMFSISTRATIVE CODE 
TITLE DEPARTMENT 

1 Administration, Department of 

2 Agriculture, Department of 

3 Auditor, Department of State 

4 Commerce, Department of 

5 Corrections, Department of 

6 Council of State 

7 Cultural Resources, Department of 

8 Elections, State Board of 

9 Governor, Office of the 

10 Human Resources, Department of 

11 Insurance, Department of 

12 Justice, Department of 

13 Labor, Department of 

14A Crime Control and Public Safety, Department of 

15 Natural Resources and Community Development, Department of 

16 Education, Department of 

17 Revenue, Department of 

18 Secretary of State, Department of 
19A Transportation, Department of 
20 Treasurer, Department of State 

*21 Occupational Licensing Boards 

22 Administrative Procedures 

23 Community Colleges, Department of 

24 Housing Finance Agency 

25 State Personnel, Office of 

26 Administrati\'e Hearings, Office of 

NOTE: Title 21 contains the chapters of the various occupational licensing boards. 
CHAPTER LICENSING BOARDS 

2 Architecture, Board of 

4 Auctioneers, Corrunission for 

6 Barber Examiners, Board of 

8 Certified Public Accountant Examiners, Board of 

10 Chiropractic Examiners, Board of 

12 Contractors, Licensing Board for 

14 Cosmetic Art Examiners, Board of 

16 Dental Examiners, Board of 

18 Electrical Contractors, Board of Examiners of 

20 Foresters, Board of Registration for 

21 Geologists, Board of 

22 Hearing /Vid Dealers and Fitters Board 
26 Landscape Architects, Licensing Board of 

28 Landscape Contractors, Registration Board of 

31 Martial & Family Therapy Certification Board 

32 Medical Examiners, Board of 

33 Midwifcp." Joint Committee 

34 Mortuar\' Science, Board of 

36 Nursing, Board of 

37 Nursing Home Administrators, Board of 

38 Occupational Therapists, Board of 
40 Opticians, Board of 

42 Optomctn,", Board of Examiners in 



105 NOR TH CAROLINA REGIS TER 



NC AC INDEX 



44 Osteopathic Examination and Registration, Board of 

46 Pharmacy, Board of 

48 Physical Therapy, Examining Committee of 

50 Plumbing and Heating Contractors, Board of 

52 Podiatry Examiners, Board of 

53 Practicing Counselors, Board of 

54 Practicing Psychologists, Board of 

56 Professional Engineers and Land Surveyors, Board of 

58 Real Estate Commission 

60 Refrigeration Examiners, Board of 

62 Sanitarian Examiners, Board of 

63 Social Work, Certification Board for 

64 Speech and Language Pathologists and 

Audiologists, Board of Examiners of 

66 Veterinary Medical Board 



NORTH CAROLINA REGISTER 106 



CUMULA TIVE INDEX 



CUMULA TIVE INDEX 

(April 1988 ■ March 1989) 



1988 - 1989 

Pages Issue 

1 - 25 1 - April 

26-108 2 - April 



AO - Administrative Order 

AG - Attorney General's Opinions 

C - Correction 

E - Errata 

EO - Executive Order 

FDL - Final Decision Letters 

ER - Final Rule 

GS - General Statute 

JO - Judicial Orders or Decision 

ERA - List of Rules Affected 

M - Miscellaneous 

NP - Notice of Petitions 

PR - Proposed Rule 

SO - Statements of Organization 

TR - Tcmporan,- Rule 

EXECUTE E ORDERS 

Executive Orders 68-71, 1 EO 

UNAL DECISION LEITERS 

Voting Rights Act, 5 FDL, 26 FDL 

ADMINISTRATE E HEARINGS 

Hearings Division, 76 PR 

CRIME CONTROL & PI BLIC SAFETY 

.-Vlcohol Law Enforcement, 47 PR 

HUMAN RESOURCES 

Health Services, 7 PR 
Medical Assistance, 7 PR, 30 PR 
Office of the Secretary', 31 PR 
Social Services Commission, 27 PR 

INDEPENDENT AGENCIES 

Housing Finance, 21 PR 

INSIRANCE 

Fire & Casualty, 32 PR 

LICENSING BOARDS 

CPA, 73 PR 



107 NOR TH CA ROLINA REGIS TER 



CUMULA TIVE INDEX 



Hearing Aid Dealers, 77 FR 

NATURAL RESOURCES AND COMMUNITY DEVELOPMENT 

Coastal Management, 11 PR, 67 PR 
Community Assistance, 69 FR 
Forest Resources, 68 PR 
Marine Fisheries, 62 PR 

STATE TREASURER 

Local Government Commission, 18 PR 



NORTH CAROLINA REGISTER 108 



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NORTH CAROLINA ADMINISTRATIVE CODE 

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1 




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4 




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6 




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8 




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11 




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14 




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17 




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RALEIGH, NORTH CAROLINA 27604 



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Office of Administrative Hearings 

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